Bitcoin seems to be decoupling from the stock markets that had pulled it down on March 12 when fears of the rapid spread of COVID-19 plagued the global economy. Now, the flagship cryptocurrency has recovered 100% from the $3,700 lows of March 13. Analysts and commentators believe that it is decoupling from the traditional markets.
On April 24, Bitcoin is hovering around $7,500 during the American session. That price is twice what it was worth during the March flash crash. It added around 10% in a day leaving the stocks languishing in losses.
The surprise surge whose source is yet to be determined smashed resistance around $7,200 and reliance on stocks.
Data from Coin360 indicate that BTC/USD is trying to form new support at $7,500 on April 23. Since rising to a high of $7,760 a day earlier, just three short dips to the $7,400 zone have been experienced. That indicates a renewed bullish strength.
The recent high was Bitcoin’s best performance since mid-March when markets lost up to 60% in line with the chaos that happened in the traditional assets. Since that time, Bitcoin has slowly tried to exit its correlation with bonds and stocks. With April 22’s surge steeply contrasting with the misery that happened on oil markets and the foreboding activities among traders.
The S&P 500, for instance, saw a steep contraction in mid-day trading as a result of news that one pharmaceutical company purportedly having an effective COVID-19 cure did not have one.
$9,000 Back in the Picture
Against a major backdrop of increasing uncertainty, Bitcoin, thus, seemed all more impressive based on the year-to-date data. The crypto was up $300 or 4.2% at press time. Compared to the March lows, BTC was up around 100%.
“If we make some nicer slow retracements in the coming few days, I’m assuming we might even be going towards $8,400 or $9,000, as there is a CME gap over there which is a narrative for traders. But if we close the daily below $7,400, then I’m assuming this to be one big trap, and I’m probably even considering any shorts again.”
In that case, Bitcoin never saw a daily close at lower levels. In the meantime, another theory arising among the traders on social platforms focused on Bitcoin’s resemblance to the Nasdaq during and after the Dotcom Bubble. One Twitter-based analyst summarized the performance of Bitcoin from the March bottom uploading supportive comparative charts stating:
“So far this is textbook V-bottom.”