Bitcoin Reaches Pivot Point After 8% Drop; Can Bulls Step In? 13

Bitcoin Reaches Pivot Point After 8% Drop; Can Bulls Step In?

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.

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.

Lee touched on this statistic and the whole narrative in a recent interview with CNBC’s Market Lunch segment, during which he quipped that he expects there to be a recovery in the cryptocurrency market heading into 2020.

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.

Featured Image from Unsplash