Bitcoin (BTC) wicked through $30,000 during June 9 as the Wall Street open revealed an ongoing stocks correlation.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader sees “relief” from US CPI print
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD threatening to head lower as the S&P 500 likewise opened with modest losses.
The pair had stayed in a tight range through June 8, this following episodes of volatility, which proved dangerous for long and short traders alike.
“The correlation between the $SPX and $BTC is again close to 1, it feels like,” Cointelegraph contributor Michaël van de Poppe tweeted on the day, summarizing the mood.
United States jobless claims data had little impact on markets, with the main event in the form of Consumer Price Index (CPI) data due June 10.
Van de Poppe predicted that the readout, which covers the month of May, would not beat the April figure, this coming after data from Europe hinted that inflation was already slowing down.
“Going into tomorrow; I think we’ll see the same from the U.S. which can benefit relief,” part of a further Twitter post read.
Fellow trader and analyst Pentoshi, meanwhile, predicted that BTC/USD could run to as high as $35,000 before entering its next major corrective phase, once more based on stock market movements.
While SPX has played out so far the lag on btc has been disappointing. Still feel we rally to 33-35 before new lows fwiw https://t.co/tuZ9Ah7zxd
— Pentoshi Flightless Bird (@Pentosh1) June 9, 2022
General sentiment, while low according to indicators, was one of frustration for seasoned market pundits.
“Bitcoin recently purchased a beautiful yet affordable home at a low-interest rate for 30 years in a quiet town called 30K. It apparently has settled in and intends to live there forever,” analyst and podcast host Scott Melker, known as the “Wolf of All Streets,” reacted to the current trend.
BTC/USD has focused on the $30,000 mark since May 9, its surrounding corridor broken only by the immediate aftermath of the Terra LUNA implosion.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
2018 vs. 2020 for BTC price, says analyst
Focusing on whether the current range would break up or down, meanwhile, opinions still varied widely.
While some had previously called for a dive to as low as $14,000 or worse, others remained convinced that May was more characteristic of a macro floor.
Van de Poppe had previously described predictions of $12,000 as “insane.”
Weighing the chances of either outcome, meanwhile, Twitter account Trader_J compared current price action to the 2018 bear market and cross-crypto crash of March 2020.
“$BTC is currently in the Bottom position of 2020. I have already said that it is exactly 2020. Maybe that’s the Bottom,” he told followers.
“If it’s a Bear Market, like 2014–2018. Then there will be another crash. 2020 vs Bear Market.”
An accompanying chart showed Bitcoin’s Risk Metric, a tool devised by crypto quant analyst Benjamin Cowen, supporting the idea that lower levels were unlikely to enter.
BTC/USD annotated chart with Risk Metric. Source: Trader_J/ Twitter
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