Cryptocurrencies fans are in for a disappointment lately. Bitcoin price declined from $12,000, once again rejected at major resistance. On its way down, it triggered a selloff on other crypto’s denominated in USD. The worse part? The selloff will likely continue.
Bitcoin matured lately. By that, we refer to the fact that it does not move on its own anymore. Instead, it became a regular financial asset, strongly correlated with what is happening in the world’s financial markets.
One cannot ignore the strong Bitcoin/Gold correlation during the market hours when gold can be traded. Or, if you add Tesla to the mix, you might see some correlation there too, albeit not that tight as in the first case.
But Bitcoin becoming a regular financial product is just what hodlers should not wish. Because the more it correlates with the mainstream financial assets, the less likely Bitcoin will deliver on the “riches” many expect from its halving process.
What If Halving Does Not Work as Many Bitcoiners Believe?
According to market efficiency, if markets are efficient, it means that everything is, more or less, priced in the current market price. Or, the halving process is known in advance, hardly surprises anyone, and yet we are supposed to believe that Bitcoin goes to $100k due to it.
If that were the case, the strong correlation with the USD seen lately would not be possible—just some food for thoughts.
Bitcoin Price Technical Analysis
Unsurprisingly, Bitcoin price found support at the $10,000 level. In the past, it found both support and resistance at the level – so why should this time be different?
The problem for bulls here is that if the Bitcoin price does not break the series of lower highs, the risk is that it will break the horizontal base. When this happens, the descending triangle broke lower, and bears will go for the measured move towards the $9,000 level while having a stop-loss order at $10,500.