The price of Bitcoin has been under immense selling pressure in the past few days.
This is mainly due to the exposure of several pessimistic news events
These events – including the BitMEX problem and President Trump’s health status – have led many analysts to expect that there will be more significant slumps in the coming days and weeks.
They also got Bitcoin Rush to break its previous correlation with gold and get back in sync with the stock market.
If this trend continues, it could hamper the growth of Bitcoin and the aggregate crypto market in the coming days, weeks and months.
Bitcoin and the aggregate crypto market have taken a massive blow when stock futures crashed on news that President Trump is infected with the deadly virus.
Still, in the face of this bearish news, the cryptocurrency has shown itself surprisingly resilient – and the bulls were able to prevent it from sagging below the support at around $ 10,400.
This recent decline came shortly after news of the CFTC’s decision to indict the owners of BitMEX for violating several laws.
However, BTC is only about 5% below its recent highs and is even showing some subtle signs of technical strength right now.
Bitcoin recovers – cops are trying to regain control
The recent news events that have rocked both the crypto sphere and traditional markets have undoubtedly been in decline for Bitcoin , but the price of the cryptocurrency has not responded as many expected.
At the time of writing, Bitcoin is trading down less than 1% at its current price of $ 10,550. This represents a remarkable increase from recent lows of $ 10,400 set at the bottom of the recent market-wide sell-off.
Where cryptocurrency trends will be in the medium term will likely depend somewhat on the stock market, which is currently falling.
BTC is breaking its correlation with gold
One declining trend that has emerged as a result of Bitcoin’s recent price decline is solid decoupling from gold – as BTC begins to closely track the stock market.
One analyst estimates that this does not bode well for BTC. He writes :
“Gold pumps, BTC falls on this news. I think we agree once and for all that BTC is not correlated with gold, but with stocks, no hacking and changing whenever it suits us, that’s how it looks now ”
Image courtesy of SmartContracter. Chart over TradingView.
Whether this correlation is growing stronger or starting to dissipate in the near future should provide significant insight into Bitcoin’s near-term outlook.