- Bitcoin hit a new milestone as correlation with big technology stocks hits an all-time high.
- The 40-day correlation between Bitcoin and Nasdaq 100 index hit 0.6945 on April 8.
- Analysts predict Bitcoin price could hit $52,000, making a u-turn in its bearish trend.
Bitcoin price could experience a trend reversal as correlation with the Nasdaq 100 hits a key milestone. Analysts are bullish on the Bitcoin price rally, and have set a target of $52,000 for BTC.
Bitcoin price could break into a rally to $52,000
Bitcoin price has consistently moved in the same direction as the Nasdaq 100 index for over six months. Analysts at Bloomberg believe Bitcoin is more in unison with big technology stocks than ever before.
The 40-day correlation between Bitcoin and Nasdaq 100 hit an all-time high of 0.6945 last Friday. The rise in correlation erodes the argument that Bitcoin is a diversifier of assets in an investor's portfolio. However, an increase in this correlation has historically pushed Bitcoin price higher.
In previous bull runs, 2017 and 2020, Bitcoin's correlation with tech stocks has fueled price rallies in the asset. The demand for Bitcoin has climbed consistently with the rise in correlation with Nasdaq 100 stocks.
Bitcoin price recently plummeted to $41,000. Proponents believe factors like increasing outflow from cryptocurrency exchanges, activity in Satoshi-era Bitcoin wallets and the rising correlation with technology stocks could drive the asset's price higher.
@Koolaid_crypto, a pseudonymous crypto analyst, believes Bitcoin encountered selling pressure over the weekend, and a macro formation that looked like a descending broadening wedge. The analyst believes Bitcoin price could test the 61.8% Fibonacci retracement level at some point and reveals a bullish outlook on BTC.
FXStreet analysts have evaluated the weekly Bitcoin price chart, predicting a rally to $52,000. Even though analysts believe a weekly close below $42,000 would indicate a bearish trend reversal, they foresee the Bitcoin price on track to target the $52,000 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?