Key Points
- Bitcoin’s correlation with U.S stocks has reached a two-year high, indicating a parallel with traditional financial markets.
- Bitcoin continues to trade above $65,000, with less intense price movements compared to previous months.
Bitcoin [BTC] has recently surpassed a significant resistance level, maintaining its upward trend on the price charts. Intriguingly, the cryptocurrency’s correlation with U.S stocks has reached a two-year high, indicating that Bitcoin is increasingly moving in line with traditional financial markets.
Bitcoin’s Correlation with U.S Stocks
Recent data from IntoTheBlock revealed that Bitcoin’s correlation with U.S stocks has reached a two-year peak. Over the past three months, Bitcoin has shown moderate volatility, with periods of slight increases and decreases, maintaining a range close to its initial value.
On the other hand, the S&P 500 has shown steady performances with less pronounced volatility compared to Bitcoin. However, both assets have moved relatively in sync, reflecting similar market sentiments.
Bitcoin’s price trend suggests a “risk-on” environment, where investors maintain or slightly increase their exposure to traditional equities and cryptocurrencies. If the S&P 500 continues its steady performance or improves, BTC could benefit from the positive sentiment. However, any negative shocks in the equity market might also affect BTC due to their correlated movements during this period.
Bitcoin’s Upward Momentum
An analysis of Bitcoin’s daily chart revealed that it closed with gains of less than 1% in the last trading session. However, the price briefly reached the $66,000-level before settling around $65,789.
At the time of writing, BTC was trading at approximately $65,660, following a slight decline of less than 1% on the charts. Furthermore, an analysis of its Average True Range (ATR) highlighted a value of around 2,099.44.
This indicates that on average, Bitcoin’s price range (from high to low) over the last 14 periods is approximately $2,099. The ATR has been declining since mid-August, suggesting that volatility has decreased over time. This could mean that the market has been witnessing less intense price movements, compared to previous months.
