Bitcoin (BTC), which soared to $30,000 in June 9, as Wall Street opened revealed a continuing stocks correlation.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
US CPI print gives Trader “relief,” says Trader
Cointelegraph Markets Pro and TradingView data showed that BTC/USD was on the verge of falling, while the S&P 500 opened with small losses.
After a few episodes of volatility that proved to be dangerous for both long- and short-term traders, the pair remained in a tight range until June 8.
Michael van de Poppe, a Cointelegraph contributor, tweeted that the correlation between $SPX and the $BTC was again very close to 1. This summarized the mood.
The United States Jobless Claims data had little effect on the markets. The main event was the Consumer Price Index (CPI), due June 10.
Van de Poppe forecast that the May readout would not surpass the April figure. This prediction came after data from Europe suggested that inflation was already slowing.
“Going into tomorrow, I think we will see the same from U.S. which could benefit relief,” reads another Twitter post.
Pentoshi, a fellow trader and analyst, foresaw that the BTC/USD would reach as high as $35,000 before it enters its next major correction phase. This prediction was based again on movements in the stock market.
SPX has performed well so far, but the lag on BTC has been disappointing. Still feel we rally to 33-35 before new lows fwiw https://t.co/tuZ9Ah7zxd
— Pentoshi Flightless Bird (@Pentosh1) June 9, 2022
Although general sentiment was low as indicated by indicators, it was a source of frustration for market experts.
“Bitcoin recently bought a beautiful, affordable home at a low interest rate for 30 year in a quiet community called 30K. It appears to have settled in and plans to live there forever,” Scott Melker, analyst and podcast host, reacted to this trend.
Since May 9, BTC/USD has been focusing on the $30,000 mark. The surrounding corridor was only broken by the immediate aftermath Terra LUNA’s implosion.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Analyst says 2018 vs.2020 for BTC price
While we are focusing on whether or not the current range will break down, opinions remain widely divided.
Related: Saylor predicts that Bitcoin will end 2022 flat, but possibly higher. Saylor also bets $1M BTC
Some had called for a dive as low as $14,000, but others believed that May was more typical of a macro floor.
Van de Poppe previously called predictions of $12,000 “insane”
While we weigh the odds of either outcome, the Twitter account Trader_J has compared the current price action with the 2018 bear market or cross-crypto crash in March 2020.
“$BTC currently occupies the Bottom Position of 2020. It is 2020, as I already stated. He suggested to his followers that maybe it was the Bottom.
“If there is a Bear Market like 2014-2018. There will be another crash. 2020 vs Bear Market.”
The accompanying chart displayed Bitcoin’s Risk Metric (a tool created by Benjamin Cowen, crypto quant analyst), supporting the idea of lower entry levels.
BTC/USD chart annotated with Risk Metric Source: Trader_J/ Twittercom. You should do your research before making any investment or trading decision.