Let's take a look at what's happening here.
From a technical perspective, we are seeing an Ascending Wedge pattern(which is a bearish pattern). Ascending Wedges are formed when the price of an asset makes a slow recovery after a Big Drop. This is the case with Bitcoin. After the huge 60% drop from 9200, BTC is making a slow recovery in the form of an ascending wedge pattern.
Secondly, the descending Trendline is acting as a very strong resistance.
The recent recovery in the stock market is also lending some support to BTC as there has been a higher positive correlation between BTC and the stock market lately. However, the stock market hasn't bottomed out yet.
Once the recovery in the stocks ends, BTC will most likely head towards $4000 mark.
From a technical perspective, we are seeing an Ascending Wedge pattern(which is a bearish pattern). Ascending Wedges are formed when the price of an asset makes a slow recovery after a Big Drop. This is the case with Bitcoin. After the huge 60% drop from 9200, BTC is making a slow recovery in the form of an ascending wedge pattern.
Secondly, the descending Trendline is acting as a very strong resistance.
The recent recovery in the stock market is also lending some support to BTC as there has been a higher positive correlation between BTC and the stock market lately. However, the stock market hasn't bottomed out yet.
Once the recovery in the stocks ends, BTC will most likely head towards $4000 mark.
Comment:
Since BTC has shown a lot of correlation with stock markets, here's something interesting about the S&P500
Comment:
BTC drops 6% today
