Bitcoin Could Reduce Its Correlation With the Stock Market – Predicts Analyst

Given the anticipation of further aggressive rate hikes from the Fed and a stronger US dollar, the CPI came in at 8.2%, and the price of bitcoin dropped to $18,190 as expected. But the price of BTC rapidly bounced again, reaching new highs of $19,500 as the buyers later seized control of a price decline in BTC, causing a rapid rise to the upside.

The price of bitcoin has increased by more than 5% during the past 24 hours, putting pressure on it to approach the $20,000 resistance level. Because of the resistance that bears are mounting at this junction, this level is still difficult to surpass for digital assets.

Cryptocurrency trader Kaleo has proposed that Bitcoin might have less of a correlation with the stock market. In a tweet on October 14, the analyst came to this conclusion by utilizing technical analysis (TA) to compare the performance of the leading cryptocurrency to other assets. The analyst underlined that this indicates the current activity of the decentralized finance (DeFi) asset.

As of August 1, Bitcoin volume has been rising to bull market levels, and since October 14, the crypto analyst behind the Bitcoin Archive Twitter account has noted that USDT volume has “gone parabolic.”

Is $3,500 the Next Target for the Bears?

Gareth Soloway, the chief market strategist of InTheMoneyStocks.com, said that, in the “worst case scenario,” Bitcoin would likely correct further toward $3,500. It’s interesting to note that he also issued a warning that the separation from the stock market would not occur very soon.

Because “the dollar continues to stay at 20+ year highs, and it continues to grind up,” Solloway previously indicated his gloomy expectation that the price of Bitcoin may decline “another leg lower to $12,000 to $13,000.” This is because “it just kills all risk assets,” he added.