Bitcoin [BTC] Price Bear Channel Intact along with Peer Pressure from Stocks: Mati Greenspan
Bitcoin [BTC] is back in the long-term bearish channel as the stock market correlation and pre-halving pump fail to break above resistance. Mati Greenspan, leading financial and crypto analyst marked that resistance from the 2019 bear channel still holds.
The mid-line of the parallel channel has been has been a significant level for resistance and support to the price as well. Currently, the mid-line is at around the $7400-$7600 range.
BTC/USD 1-Day Chart on Coinbase (TradingView)
Global Economic News – ‘None of it Good’
Presently, leading economists are fearing the dreaded U-shaped recovery which takes longer than a V-shaped recovery from a recession. The lock-down still in effect and due extension in some areas, and unemployment rates soaring as well. The uncertainty over risk investments is high. Greenspan noted in this daily newsletter,
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Needless to say, there’s a distinct risk-off atmosphere in the markets today. The only things rising today are crude oil and the VIX. Bitcoin was sustaining gains earlier, but over the last hour or two, it has succumbed to peer pressure and flipped to red on the day.
The S&P 500 index declined below 61.8% Fibonacci Retracement level on Thursday; $2790 and $2650 are likely to provide support to the price.
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S&P 500 Daily Chart (TradingView)
Reportedly, the percentage of bond holdings in global stocks is now heading towards a 7-year high. The risk to the downside in stocks is growing as the slowdown continues to precipitate the economy. Hence, if the correlation with the stock markets continue to hold, the downtrend in Bitcoin could be be intensified on the riskier altcoins.
As reported on Coingape yesterday, Greenspan moved 100% of his eToro crypto portfolio in Bitcoin, and the number of copiers of this move on the exchange has been significant as well. Moreover, while halving incites bullish sentiments in the crypto markets, as we head closer, the fear of a drop is evident. He noted in an interview,
Halving is an event which usually takes two to three months to price it in.
When do you think Bitcoin [BTC] will decouple from the stocks? Please share your views with us.