Bitcoin Volatility Mimicking Stock Market Behavior, per Analyst
A well-known crypto analyst suggests that Bitcoin (BTC) might be emulating the stock market but in a more erratic manner.
A Possible Pattern
In a recent video analysis, crypto strategist Benjamin Cowen conveys to his 801,000 YouTube followers that Bitcoin could be replicating the movements of the Russell 2000 Index, NASDAQ, and S&P 500.
- The major stock indices all surged to around their 50-day moving average (SMA) before experiencing a pullback.
- BTC could follow a similar trajectory by rising to its 50-day SMA before a downward correction, per Cowen.
Coinciding Movements
“You have the S&P, the NASDAQ, and the Russell all finishing just below their 50-day moving average on Friday. A few weeks ago, we saw them at their bull market support band while Bitcoin was not,” Cowen explains.
- He points out that if Bitcoin acts as a more volatile version of the stock market, corrections in the stock market could also impact the crypto market.
- He notes that BTC’s 50-day moving average is about $66,000, highlighting a potential convergence with the stock market trends.
Recent Bitcoin Movement
Yesterday, BTC reached a peak of $65,520 before dropping. Presently, Bitcoin trades at $63,711.
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The post Bitcoin Rally Could Be Short-Lived if BTC Follows Stock Market, According to Analyst Benjamin Cowen appeared first on The Daily Hodl.
🔥Closing Remarks: Stay Informed and Stay Ahead 🔥
Keep track of Bitcoin’s movements and market trends to navigate the crypto landscape with confidence. Stay connected, stay informed, and embrace the volatility for profitable outcomes.
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