- Bitcoin’s correlation with Gold remains strong.
- BTC/USD is vulnerable to further sell-off towards $9,000.
Bitcoin (BTC) is changing hands at $10,160 after a short-lived dip to 9,853 on Saturday, September 5. The first digital currency has lost nearly 1% of its value in the last 24 hours and has stayed unchanged since the start of the day. Bitcoin’s market share improved significantly to 58% from 56.6% on Saturday.
Bitcoin and Gold will benefit from the stock market sell-off
The co-founder of 10T Holdings и Gold Bullion International, Dan Tapiero, believes that the stock market might be vulnerable to the sell-off due to the excessive optimism among retails investors; however, the decline would not affect Gold and Bitcoin.
Unfortunately, most worrying data points have been seen in a while for #StockMarket from a short term perspective. Certainly, an extreme of epic proportions hit on this indicator. Does not seem to be something that can be corrected in just a few days. #Gold and #BTC should hold up.
Notably, the correlation between Gold and Bitcoin nearly doubled from May to August and settled at 0.837.
BTC/USD: The technical picture
From the technical point of view, BTC/USD settled below the daily SMA50 and the upside trend line from the March 13 low of $3,886. As the price stays under this technically important barrier, the chances are that it will dive under $10,00 and retest $9,000 before the upside momentum is resumed. The daily SMA200 reinforces the support area and creates a precondition for a rebound.
Meanwhile, a sustainable move above the broken trend line locate don approach to $11,000 will negate the bearish scenario and allow for an extended recovery towards $12,000.
On the upside, we will need to see a sustainable move above $11,000 will improve the immediate technical picture and allow for an extended recovery for the next resistance of $12,000.
BTC/USD daily chart