Bitcoin (BTC) took a chunk out of its impulse move above $41,000 on April 14 as Wall Street opened with a whimper.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin follows stocks downhill
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it made swift losses as trading began on April 14.
The pair had been approaching $41,600 the day prior, but momentum ran out overnight, and the largest cryptocurrency took minutes to shave almost $1,000 off its price at the opening bell.
At the time of writing, $40,000 was still in play as support but bulls had similarly failed to recoup the latest lost ground.
Traders began to favor a fresh downside once again, the mood fueled by a disappointing start for U.S. equities and Bitcoin’s implied correlation.
#Bitcoin
This won’t be popular opinion but I think something like this is very probable.
Won’t be surprised in the slightest if it doesn’t, but gut is telling me to keep an eye on it. pic.twitter.com/ym1SYXRZR2
— Nebraskangooner (@Nebraskangooner) April 14, 2022
The S&P 500 (SPX) traded down 0.34% at the time of writing.
“The correlation coefficient for BTC vs SPX has reached very high regions of ~0.9 on a 7-week basis,” popular Twitter account CRYPTOBIRB noted.
“It shows that on average, Bitcoin has been trading like the large-cap equities and the inter-market connection is apparent. As the correlation fluctuates, inversion may be ahead.”
Short-term price performance, thus, left few impressed as traders kept their guard up in case of a deeper retracement. For Anbessa, only the sustained retention of $41,300 would alter the immediate outlook.
Hopium:
– potential early parabola
– inverse H&S neckline highlighted green
I don’t see this scenario playing out atm, ready to get stopped out on a bear flag breakout.
A relcaim of Kijun Sen $41,3k could change the shortterm outlook. Still LONG above bear flag support.
— AN₿ESSA (@Anbessa100) April 14, 2022
Dogecoin sees reliable bull forces return
Bitcoin’s about-turn likewise took the wind out of altcoins, with only Dogecoin (DOGE) managing to buck the trend.
Related: BTC stocks correlation…
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