Bitcoin (BTC) continued to strengthen on June 21 as Wall Street trade opened near $21,500.
Analyst sees weakening BTC stock correlation
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD at $21,633 on Bitstamp, its best performance since June 16.
The largest cryptocurrency managed to avoid new losses in the new week; these have been reserved for the weekend so far. Hence, the futures market reopened without falling to $17,600.
While some plan to short BTC at current levels, the sentiment among market participants is broadly one of “wait and see” as U.S. stocks open. The S&P 500 and Nasdaq 100 both opened about 2.5% higher.
Popular trader Bierre is watching the 200-period moving average (MA) on the four-hour chart. For him, breaking it on the day would be a sign of strength not seen in weeks.
Different ways to highlight why today’s fight should be about H4 trends -> May 14-16.
The sell-off rebounded, breaking the H4 trend for the first time since the US open >38-39k, failing to hold the H4 trend low for a few days (final weeks).
Just some ideas. pic.twitter.com/TasEwVS5gx
— Bill (@pierre_crypt0) June 21, 2022
Meanwhile, on the topic of stocks, data from Bloomberg shows that Bitcoin is actually rapidly reducing its correlation with the Nasdaq 100. The potential upside could be that bitcoin doesn’t trade like tech stocks, improving its ability to withstand central bank monetary tightening.
As Cointelegraph reported this week, global stock markets are currently facing their worst quarter in history.
#Bitcoin’s close ties to tech stocks fell amid the cryptocurrency slump, fueled by a combination of Fed rate hikes and high inflation. Bitcoin’s 20-day correlation with the Nasdaq 100 has fallen from around 0.88 in early May to its current low of 0.30, BBG calculated. pic.twitter.com/0j3fRb6gtJ
— Holger Zschaepitz (@Schuldensuehner) June 21, 2022
Mike McGlone, chief commodities strategist at Bloomberg Intelligence, added in a June 20 tweet: “The 1H plunge in risk assets is eliminating inflation at breakneck speed, which could translate into pre-pandemic deflationary forces in 2H. appear again.”
“The main beneficiaries of this situation are likely to be gold, bitcoin and U.S. Treasury long-term bonds.”
McGlone also questioned whether stocks are “overheated” rather than “mature bitcoin.”
SHIB headlines altcoin rally
On altcoins, the relief is also evident as Bitcoin progresses.
Related: This is not hodling!Over 50% of Bitcoin addresses are still profitable
However, the top 50 cryptocurrencies by market cap are led by a surprise mover in the form of Shiba Inu (SHIB).
The meme-based tribute to Dogecoin (DOGE) saw a 20% increase on the day, after its namesake received a new pledge of support from Tesla CEO Elon Musk.
Elsewhere, Ethereum (ETH) was near $1,200 at the time of writing, also the highest since June 16, as the daily gain was 5%.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.