Forex in this article
Bitcoin increasingly in line with tech stocks
Currently in a fairly narrow trading range
Analyst: “It’s so boring”
Bitcoin in a narrow trading range – in line with tech stocks
While not so long ago bitcoin was traded as an alternative to gold and therefore as a hedge against inflation, the popular cryptocurrency may soon lose this appeal as a safe haven. The data shows that the correlation between Bitcoin and the US NASDAQ 100 technology index has been rising for some time and only recently hit a new high.
And so Bitcoin has been moving in a very tight trading range lately, which annoys some market watchers, such as cash.ch reports. The popular cryptocurrency just fails to make a significant upward push. “It’s so boring – it’s like watching the grass grow. It should be an exciting, volatile asset with a bit of a mojo. But no,” quoted cash.ch Fiona Cincotta, senior market analyst at City Index.
Bitcoin is trending lower this year: Year-to-date, the popular cryptocurrency has fallen just over 15%. Bitcoin is currently trading at around US$49,100 on the Coindesk trading platform (as of April 27, 2022).
Graphic technique: these marks are important at the moment
Last week, however, bitcoin breached an important mid-week technical level: the largest cryptocurrency by market cap surpassed its 50-day moving average at $42,000 – before falling sharply below it the same day. . The next day, Bitcoin broke through the bar again and even got closer to $43,000. During the day, however, it briefly fell below the $40,000 mark, but was then able to regain it.
According to cash.ch, Teong Hng, Managing Director of Hong Kong-based Satori Research, pointed out that Bitcoin is “at a very significant technical level” above $42,000 and the technical picture is weak with price above $42,000 – US dollar level. , as a 50-day moving average, could turn more bullish.
The founder of research firm Fairlead Strategies, Katie Stockton, told Markets Insider that the key test is Bitcoin’s ability to hold the $40,000 support level crucially. According to them, Bitcoin should now trend towards its short-term 200-day moving average. Bitcoin is likely to encounter resistance in this area – according to Stockton it is currently around $48,100. “The daily MACD is also pinched, reflecting improving near-term momentum supporting an upward move towards next resistance near $48.1K,” Stockton said. A rise in this price would represent an upside potential of more than 22% from current levels.
It remains to be seen whether bitcoin will be able to breach the $42,000 mark again and actually see further upside potential.
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