Bitcoin (BTC) took part of its momentum move above $41,000 on April 14 as Wall Street opened with a whimper.
Bitcoin follows stocks downhill
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it turned rapid losses early in trading on April 14.
The pair approached $41,600 the previous day, but the momentum ended overnight, and the largest cryptocurrency took minutes to shed nearly $1,000 from its opening bell price.
At the time of writing, $40,000 support was still in play, but the bulls had also failed to regain recent lost ground.
Traders once again began favoring fresh downside, sentiment fueled by a disappointing start for US stocks and Bitcoin’s implied correlation.
This won’t be a common opinion, but I think something like this is very likely.
I won’t be the least bit surprised if it doesn’t, but my gut tells me to keep an eye on it. pic.twitter.com/ym1SYXRZR2
— Nebraskongooner (@Nebraskongooner) April 14, 2022
The S&P 500 (SPX) is down 0.34% at the time of writing.
“The correlation coefficient for BTC vs. SPX has reached very high regions of ~0.9 on a 7-week basis,” according to popular Twitter account CRYPTOBIRB written down.
“It shows that Bitcoin has traded in line with large-cap stocks on average and the connection between the markets is evident. As the correlation fluctuates, an inversion may be ahead.”
The near-term price action therefore left few impressed as traders remained alert in the event of a deeper retracement. For Anbessa, only a sustained hold at $41,300 would change the immediate outlook.
– possible early parable
– Inverted H&S neckline highlighted in green
I don’t see this scenario playing out, ready to be stopped on a bear flag breakout.
A $41.3k claim from Kijun Sen could change the near-term outlook. Still LONG above bear flag support.
— AN₿ESSA (@Anbessa100) April 14, 2022
Dogecoin sees the return of reliable bull forces
Bitcoin’s reversal also took the wind out of the way of altcoins, with only Dogecoin (DOGE) managing to buck the trend.
Related: BTC Stock Correlation “Not What We Want” – 5 Things to Know About Bitcoin This Week
That was, in classic style, due to the effects of noise from Tesla CEO and DOGE advocate Elon Musk.
The latest chapter in the history of the billionaire’s stake in Twitter came in the form of Musk’s request to buy out the company or “reconsider” its 9.2% stake.
DOGE/USD bounced higher on the news, but a subsequent decline left the daily gains at just 2%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/bitcoin-dives-on-wall-street-open-doge-price-jumps-on-elon-musk-s-twitter-offer Bitcoin pops up on Wall Street, DOGE price jumps on Elon Musk’s Twitter bid