Bitcoin [BTC] gained 4.1% on a daily scale yesterday, with the price topping at $716x. The bullish impetus echoed in the other cryptocurrencies as well. On a daily scale, it is facing resistance from the 50-Day EMA as it closes around $7135.
Bitcoin halving is now less than 20 days away with an ETA on 12th May at 9: 00 hours UTC. The event leading up to halving has been bullish in the last two times. Leading derivatives trader and analyst Tone Vays suggests from his analysis that one more halving pump could be due. He says,
“I can see one more halving pump around the edge of the (ascending) triangle”
According to his analysis, the price is currently in a bullish consolidation with higher highs and resistance around $7250-$7300. The target of the move is around $9,400-$9,700.
The long-term weekly chart is, however, still playing out where he does not see $10,000 until next year.
Stock Market Correlation
Apart from halving, the price action in the stock markets is also holding the bullish sentiments in Bitcoin [BTC]. More than one month after the crash due to coronavirus, the correlation with the stock market is still holding above 0.4.
Josh Rager, a crypto analyst and trader, notes,
Unless the $ tanks, Bitcoin will hold above $6k Potential future pullbacks in both markets but until stocks drop, I’m not bearish on Bitcoin price
The SPX index is looking to hold support above the 50% retracement level at $2799. Nevertheless, as the COVID-19 crisis continues to affect most parts of the US, overall sentiments in the market is still bearish.
The sentiment around Gold is looking bullish, as the price broke above $1700 again the last day. It gained 1.67% on a daily scale as it held support above $1670. Fundamentally, Bitcoin [BTC] traders are looking for a stronger correlation with gold, than with the stock markets at the moment. However, only when Bitcoin has completely decoupled from the stock markets, one could completely confirm risk-off properties in the market.
Do you think that another halving pump is due or correction in markets will ensure? Please share your views with us.
Source: Coin GApe