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The largest cryptocurrency rose for a third day, gaining as high as 3.7%, but it has been stagnant around $30,000 for weeks. Moreover, its record-high correlation with the Nasdaq 100, which demonstrates its behavior as a risk asset, has decreased over the past week as tech companies have rallied.
"This is the type of de-correlation that nobody desired," said Antoni Trenchev, co-founder and managing partner of cryptocurrency lender Nexo. "Bitcoin has yet to test its May 12 lows below $26,000." Given Bitcoin's failure to mimic the Nasdaq's increases over the past week, it seems inevitable."
Bitcoin has been hampered in recent months as the Federal Reserve and other central banks have shifted toward rate-hiking cycles in response to persistently rising inflation. The implosion of the Terra ecosystem has harmed the perception of digital assets.
itcoin is holding up rather well compared to some of its competitors, notably second-placed Ether, although some technical analysis continues to raise red flags.
The price of Bitcoin broke lower late last week, concluding two weeks of sideways movement within a so-called "pennant." According to the pattern, bears will continue to have the upper hand till the token reclaims $30,200, and any break below $28,000 might bring $25,000 back into view. A pattern of declining triangles implies that a drop below $25,400 might bring the 2017 high of just under $20,000 into play.
Mark Newton, head of technical strategy at Fundstrat, stated in a note on Thursday that a last drop to test the lows of May 12 near $25,401 remains more plausible before any meaningful low is in place.
