A number of crypto traders are expressing their bullish sentiments on Bitcoin after BTC rallied amid an S&P 500 (SPX) sell-off, indicating the crypto king’s correlation with traditional markets may be coming to an end.
On Monday, the world’s leading cryptocurrency climbed as high as $11,835, up by 3.4%, while the S&P 500 tanked 1.63%. The unusual failure in correlation caught the attention of financial markets editor Holger Zschaepitz, who told his 140,000 followers that Bitcoin is “emerging as a relative oasis of calm and outperformance.”
“Bitcoin rallies to almost $12k while stocks stumble as the cryptocurrency is emerging as a relative oasis of calm and outperformance. Crypto fans are closely watching the $12,000 level as a major hurdle to cross before it can embark on a bigger rally.”
The apparent decoupling of BTC and the S&P 500 is being closely watched by crypto traders. Analyst Credible Crypto says Monday’s price action offers “a taste” of how BTC and the SPX will move in opposite directions in the coming years with Bitcoin climbing higher.
Meanwhile, prominent pseudonymous analyst The Crypto Dog tells his crew of 230,000 Twitter followers that Bitcoin appears poised for a steep upward rally.
“I think we start to go parabolic soon… Bullish rising wedge, IMO. Bears want to see 11.1, I think getting that entry again is ambitious…
My trading plan is just hold but it’s still damn hard not to watch the chart… What’s stopping this from going to $200,000?”
But not all analysts are short-term bullish on the most dominant cryptocurrency. Full-time trader TraderXO believes that Bitcoin will get rejected around $12,000 resistance and drop all the way down to $10,800.
“BTC updated. Would like to see one more push higher.”
Data from crypto insights platform CoinMetrics shows that the correlation between Bitcoin and the S&P 500 had been on the up and up for most of 2020. Since September, however, the correlation between the two assets has shown signs of topping out.
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