On Friday and Saturday, hopes were running high in the Bitcoin market; the price of the leading cryptocurrency had topped $7,500, then $7,600, then $7,800. Analysts thought that this bullish pressure was preparing the cryptocurrency to form a short-term uptrend, which might have been able to push Bitcoin back into bull market territory.
Unfortunately for bullish investors, this didn’t happen, with BTC incurring an 8% drop from its weekly high of $7.850.
Despite this bearish correction, not all hope is lost for the cryptocurrency market. Popular analyst Mitoshi Kaku recently made a bullish observation: the $7,195 level, which they claim is an important level for Bitcoin to hold, managed to remain as support, while today is a “pivot day” according to his analysis. This confluence would suggest that the cryptocurrency has a few days of upside ahead.
I shared this chart yesterday on the group. But today coming back from a few days off I was hesitant and cautious to open the long, but 7195 (WP Level) held really good, I longed 7200. Today is a pivot day on the 1D. Let’s see if $BTC has legs! 🤓 pic.twitter.com/OV6bYSPxvr
— Mitoshi Kaku 👨🏻🚀 (@CryptoSays) December 2, 2019
Mitoshi’s assertion comes shortly after Bloomberg noted that the GTI Vera Convergence Divergence Indicator, which measures up and down shifts, has shown that BTC has entered a “new buying trend,” thus ”potentially signaling that it’s primed to retake the upper end of its trading range around $8,000.
It isn’t only these technical signals that may be of benefit to bulls.
Last week, the S&P 500 set an all-time high at 3,150, and the index has gained some 25% in the past year alone — likely one of the strongest years on record for the stock market. These gains have been reflected across the American stock market, meaning for the Dow Jones and the NYSE Composite indices as well.
While many might not think that this has anything to do with Bitcoin and its ilk from the surface, analyst Thomas Lee believes that this should be of benefit for cryptocurrency. The Fundstrat co-founder recently observed that BTC performs well whenever the S&P 500 is trending higher, posting a chart showing a growing correlation between the performance of the two markets.
– multiple signs point to 2020 economy > 2019 economy
Tom Lee: The rally in small-caps is a good sign of continued growth in the markets next year https://t.co/rLgrouxpRQ
— Thomas Lee (@fundstrat) November 27, 2019
He specifically said that the surge in the price of American equities, which are now at all-time highs mostly across the board, sets the stage for risk-tolerant investors to add capital to Bitcoin and other markets that may be deemed “risky” from a classical standpoint.
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