Bitcoin Price Analysis: A failure at $7,000 to push BTC/USD from the cliff

• BTC/USD is less correlated to the stock markets.
• A failure to break above $7,000 will return bears to the market.

The cryptocurrency market resumed the recovery after a short-lived period of range-bound trading. All major digital assets have settled in a green zone, despite the sell-off on the global financial markets. The total capitalization of all digital assets in circulation reached $186 billion, while an average daily trading volume settled at $125 billion. 

De-coupling from stocks

Traditional financial markets stayed bloody red on Wednesday and managed to recover marginally on Thursday. US President Donald Trump scared the markets once again. This time he predicted that COVID-19 may claim the lives of 100,000-240,000 American citizens. 

Apart from that, OPEC removed all limitations on Wednesday, which means that the member-states can pump as much oil as they want. Considering s huge oversupply on the market, investors expected another strong sell-off; however, the reaction was rather muted, even though, S&P 500 and oil ended the day in a red zone

Bitcoin proved rather immune to those developments and continued its slow but steady recovery. Namely, Bitcoin supporters pointed out that it was trading as a non-correlated asset once again, though it is still too early to draw any conclusions in this respect. 

Anyway, the cryptocurrency market may be boosted later today, if the sentiments improve later today. Also, another stimulus package to fight the economic consequences of coronavirus pandemic bay trigger “Brrrr” reaction in the cryptocurrency community. Brrr is the sound of the printing press, which symbolizes the inflationary processes, while Bitcoin is deflationary by its nature and can be used as a hedge against irresponsible monetary policies.

BTC/USD: Technical picture

From the technical point of view, $7,000 remains the key target for BTC bulls in the nearest future. THis psychological level is reinforced by the upper boundary of the pennant formation. If the price rejects this barrier, the chances are, that the bearich sentiments will get stronger and BTC/USD will exit the formation by breaking its lower boundary. In this case, the a sustainable move below $6,150-$6,000 area will open up the way towards the recent low of $5,854 and, ponetially to SMA200 weekly on $5,500.

BTC/USD daily chart