Are Bitcoin [BTC] and Stock Market Bears in Denial? Bulls Take Control at these Prices


Bitcoin [BTC] price continues to its’ uptrend as it breaks above the previous range resistance around $7000. The price is in a short-term bullish trend with higher-highs and higher-lows.

Advertisement

eToro


btcusd chart
BTC/USD 4-hour Chart on Bitstamp (TradingView)

Currently, we are not a daily green 9 w.r.t. TD sequential analysis. Hence, the probability of a reversal is strong as we head into Wednesday with more than 18 hours left.

If it continues to hold support above $6,900, the trend is likely to remain intact. The next area of resistance for bulls is around $7,800-$8,200.

btcusd daily charts
BTC/USD Daily Chart on Bitstamp (TradingView)

Nevertheless, the bears on BitMEX are still not convinced of a bull market as the funding rate remains negative. Moreover, on Huobi Derivatives Market, the Open Interest is increasing along with the BTC basis as well, signalling a return of long interest. However, the accounts with bear sentiments seem to be in larger numbers than bulls.

huobi stats
Huobi Derivatives Market Stats

Similarly, on Okex, the BTC basis has been in an uptrend since the fall in mid-March. Nevertheless, the predominant position on the exchange on continues to bet on a correction.

Advertisement

Crypto Rocket

bitcoin okex basis
BTC Basis on Okex

On SPX Correlation

The stock markets showed signs of bearish reversal last day after days of a shocking uptrend. The bears seem to be hurt worse on the wall street than in the crypto markets. As the crisis due to COVID-19 continues to linger in the west, the economic stimulus by Governments seems to be the reason behind uptrend.

The SPX index is trading at $2650, after the swing low at $2190 in the recent panic crash. According to, Thomas Lee, financial analyst and partner at Fundstrat, the stocks are out-performing the ‘dead-cat’ bounces from the last three times.

The point of reversal of a bounce in 1987, 2002 and even in 2008 was technically below current levels. He tweeted,

S&P 500 passed 2,475 and 2,600, so stock not “repelled” by retracements ceiling (25%/33%) that led retest lows ’87, ’02 and ’08.

– but moving up 2,793 (50% retrace) is the market confirming recovery.

sp500 charts
S&P 500 Daily Chart (TradingView)

Fundamentally, the sentiments are inclined towards bullish safe-haven aka Bitcoin and Gold, along with bearish equity markets. Nevertheless, due to the BTC correlation with the stock markets, the price action in the next few weeks will define the true characteristics of Bitcoin.

How do you think these assets will perform in the short to mid-term? Please share your views with us. 

Summary

Are Bitcoin [BTC] and Stock Market Bulls in Denial? Bulls Take Control at these Levels

Article Name

Are Bitcoin [BTC] and Stock Market Bulls in Denial? Bulls Take Control at these Levels

Description

Bitcoin [BTC] price continues to its’ uptrend as it breaks above the previous range resistance around $7000. The price is in a short-term bullish trend with higher-highs and higher-lows. 

Author

Nivesh Rustgi

Publisher Name

CoinGape

Publisher Logo

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



Share on Facebook



Share on Twitter



Share on Linkedin



Share on Telegram





Source link

Comments (No)

Leave a Reply