A strong correlation with stock market movements still leaves room for Bitcoin to test five figures, says trader Michaël van de Poppe.
Bitcoin (BTC) was testing $9,500 on June 16 after a recovery from near three-week lows stalled at classic resistance levels.
Cryptocurrency market daily overview. Source: Coin360
BTC price focuses on $9,500
Data from Cointelegraph Markets and CoinMarketCap showed BTC/USD gaining $600 over the past 24 hours to hit highs of $9,570.
On Tuesday, Bitcoin’s progress stalled, with $9,500 proving a weak support level and hourly performance producing lows of $9,450 at press time.
Bitcoin one-day chart. Source: CoinMarketCap
As Cointelegraph reported, stock market action continues to shape Bitcoin’s price performance. A pretrading rout on Monday sparked a brief trip below $9,000, while BTC’s recovery came in tandem with a surge higher across stocks.
The impetus for the dip and subsequent recovery came in the form of coronavirus concerns followed by a stimulus announcement from the United States Federal Reserve.
After the Fed revealed it would step up its presence in bond markets, rumors surfaced that President Donald Trump’s administration was preparing an infrastructure investment boost worth $1 trillion.
The result of Monday’s action appears to be that Bitcoin remains exposed to macro forces, despite the broad “decoupling” phenomenon that the largest cryptocurrency has undergone since the major coronavirus crash in March.
Bitcoin “back on schedule” for $10,500
Despite the volatility, Cointelegraph analyst Michaël van de Poppe welcomed Bitcoin’s return to the focal $9,500 zone.
“And, the price of #bitcoin is back in range and back on schedule to break above $10,500 towards $12,000,” he summarized in a Twitter update.
Speaking to Forbes on Monday, meanwhile, van de Poppe argued that Bitcoin “needs to reclaim $9,300 relatively fast” in order to prevent a loss of momentum.
$8,600 represented a “crucial pivot,” he added, with a failure to hold that level an invitation to test the 200-day moving average — currently at just above $8,000 or as low as the $6,000 range.
Others are similarly cautious. Among them is fellow analyst filbfilb, who last week warned that $10,000 would likely continue to evade the market. Instead, the focus should be on levels closer to $8,000, he suggested.
Cointelegraph’s latest weekly markets newsletter provides insights into the factors affecting the Bitcoin price in the week ahead.