Bitcoin traders expect BTC price to grow despite TD9 signalling otherwise
- The stock market's TD9 sell signal has been flashing on multiple time frames recently.
- BTC correlation with the stock market indicates that a pending fall might also affect the leading crypto.
- Despite the high correlation between BTC and the stock market, however, most traders remain optimistic.
Bitcoin price has been rather still for the better part of the past two months, which helped build up quite a bit of tension in the crypto industry. Traders and investors know that the coin doesn’t stand still for long, and more often than not, its price tends to make a rather sudden move after a while.
Stock market expecting a price drop, will BTC follow?
S&P 500 chart has shown a TD9 sell signal, and on various time frames, as well. For many, this is an indication that Bitcoin price is about to drop, especially after the events in mid-March, when a strong correlation between BTC and the stock market was established.
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However, cryptocurrency traders seem to ignore the signal. Instead, many seem to expect that the price will grow in days to come, likely towards mid-$9,000s.
Market analyst Michael van de Poppe believes that BTC has strong support to keep it from going down. Meanwhile, the coin’s uptrend remains virtually intact.
There were a few drops below the $9k level, but the coin never remained down for long. Not only that, but its mining difficulty hit a new ATH yesterday, indicating that the miners are returning after three months, after many decided to depart following the mid-May halving.
Bitcoin and stock market correlation
As for Bitcoin’s correlation with the stock market, many believe that it is a thing of the past. Especially after the crypto industry recovered rather quickly after the March crash, while the stock market took significantly longer to see any recovery.
Recent data from Skew, on the other hand, says that the levels of correlation have been relatively high since March. This would indicate that Bitcoin would, in fact, follow the stock market if it falls in the short term.
Van de Poppe also noted that he himself expects a rally that will take the coin above $9.,600, provided that it can defend the $9,200 level. His opinion was also supported by another trader, Zoran Kole, who suggested that BTC has high chances of continuing its uptrend and rising towards mid-$9000s.