Bitcoin, the number one cryptocurrency by market capitalization, is facing market turbulence, but prominent trader CrediBULL Crypto remains unfazed.
He argues that BTC’s correlation with traditional stocks is overstated, and maintains that the asset’s long-term trajectory remains intact.
Bitcoin’s Correlation With Stocks: Overblown Fears?
The recent dip in the price of Bitcoin, where it dropped below $80,000, has sparked debate over its ties to traditional financial markets. Some analysts fear the weaknesses witnessed in equities could spill over into crypto. However, CrediBULL Crypto is of the opinion that the S&P 500’s correction is a normal market movement rather than a sign of deeper trouble.
“The correction we have seen thus far on it, for all intents and purposes, is considered healthy/normal based on my system,” the trader wrote on X.
He highlighted that historically, BTC has moved independently, even during times of macroeconomic uncertainty. While mainstream finance experts see risk, CrediBULL views the current dip as an opportunity for patient investors. “Charts that look ‘cooked’ present the most lucrative opportunities,” he asserted, dismissing concerns about looming economic slowdowns.
The investor, with more than 465,000 followers on X, advised traders to focus on Bitcoin’s technical levels rather than stock market trends. According to him, the original cryptocurrency is forming a base between key resistance and support zones, leading him to believe that holding current levels would be a bullish indicator.
However, market analysts such as Peter Brandt and BitMEX co-founder Arthur Hayes, have pointed to a potential drop below $80,000 for BTC. Brandt has noted a double-top pattern, warning that the cryptocurrency needs to reclaim $90,000 to reverse bearish sentiment. On his part, Hayes sees a potential retest of $78,000, with $75,000 as the next downside target if the asset’s weakness persists.
Market Sentiment
While the coin is still up 18.6% across 12 months, its current price is 25% lower than its all-time high level of $108,786 recorded earlier in the year.
Despite the pullback, long-term sentiment has improved. Even though the Fear and Greed Index shifted from 92 a year ago, signaling “extreme greed,” to a recent low of 10, indicating “extreme fear,” the price of Bitcoin is still nearly 20% higher than it was then.
For now, investors are urged to stay patient and have a strategy for both bearish and bullish turns. “Key is to have a plan for either outcome so you literally can’t lose,” is CrediBULL’s advice.
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