• Bitcoin may experience a short-term sell-off.
  • The strong long-term support is created by $8,000.

Bitcoin may fall victim to the crash on the stock markets, according to an independent trader Alessio Rastani, who was buying S&P 500 and the UK FTSE 100 when the stocks crashed on March.

Now he is looking to pull out of the US stock market as it moves towards a risky zone. Notably  speaking in the interview with INTERNET DO  Rastani pointed to a positive correlation between BTC and the US stock market. 

He sticks to a bullish bitcoin forecast in the long run. However, if  a bearish stock market scenario plays out, bitcoin could also take a temporary nosedive

 If the positive correlation between bitcoin and the S&P 500 continues, which is likely, then bitcoin could also see a retracement or correction at the same time when the S&P starts its corrective drop. But this correlation remains to be confirmed by price action, he said.

BTC/USD may take out the resistance of $10,000, and once this happens, we will see a fast growth towards $11,000 and $12,000, he added.

BTC/USD: Technical picture

Meanwhile, at the time of writing, BTC/USD is changing hands at $9,700, mostly unchanged since this time on Tuesday and down 1% since the beginning of the day. The first digital coin has been locked in a tight range after a failed attempt to settle above $10,000 at the beginning of the previous week.

On the weekly charts, the price has created two Doji candles, which can be interpreted as a signal of market uncertainty. On a daiyl chart, BTC/USD moved outside the triangle pattern. Now the price is moving along the upper line of the triangle now at $9,600 amid lack of upside momentum. If the coin return inside the pattern, the downside momentum may gain traction and take the price to $9,000. THis psychological barrier is reinforced by daily SMA50, and it separates us from a deeper decline towards $8,000 with daily SMA100 and SMA200 clustered around this barrier.

BTC/USD daily chart

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The Nonfarm Payrolls (NFP) data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

More Bitcoin News

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano (ADA) price has succeeded in breaking above key levels near $0.39 as the pivotal historical level at $0.388 and the 200-day Simple Moving Average (SMA) all got broken to the upside with the Federal Reserve meeting on Wednesday.

More Cardano News

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic (ETC) is set to book a very outright bullish intraday session just hours before the US session kicks in. As the dust is settling for global markets after all major central banks had their say on Wednesday.

More Ethereum Classic News

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings

More Bitcoin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP