• Bitcoin may resume the upside if the stock market continues growth.
  • BTC/USD recovery is still capped by $7,150-$7,200.

Bitcoin correlation to stock markets is one of the hottest topics discussed in the cryptocurrency markets. While BTC movements have no clear correlation with the global stock markets, the improved sentiments help the first digital asset to push through another critical resistance level. The US stock market seems to be on a recovery path after a major collapse triggered by the economic consequences of COVID-19 pandemic.  Stocks of Facebook, Amazon, Netflix, Alphabet, Microsoft, Apple, Nvidia that are also known as FANGMAN started the week just 7% below their historic highs, despite dismal macroeconomic statistics and soaring unemployment in the USA. 

What crisis? Total market cap of FANGMAN (Facebook, Amazon, Netflix, Alphabet, Microsoft, Apple, Nvidia) at $5.53tn, only 7% below ATH of $5.95tn, Holger Zschaepitz, the author of the German media outlet WELT, wrote on Twitter.

However, many economists believe that this growth is not healthy which means that the poor get poorer, while the wealthy get more wealth. This situation may eventually lead to social unrest, especially if the economy dives deeper into recession, and let Bitcoin shine to its advantage. At least, that's what cryptocurrency enthusiasts are hoping for. 

BTC/USD: technical picture

At the time of writing, BTC/USD is changing hands at $7,170, mostly unchanged both on a day-to-day basis and since the beginning of Monday. The first digital asset managed to settle above psychological $7,000; however, the further upside is limited by the next strong resistance $7,150-$7,200. This barrier is created by 50% Fibo retracement for the downside move from February high and it stopped BTC recovery on the weekend. Once it is out of the way, the upside is likely to gain traction with the next focus on $7,500.

On the downside, the support is created psychological $7,000, followed by the daily SMA50 (currently at $6,880). This line limited the recovery since the beginning of April, now it serves as strong technical support. If bulls fail to maintain the price above this barrier, the sell-off may be extended to support area $6,500-$6,400, which includes the lowest levels of the previous two days and 38.2% Fibo retracement for the above-said movement.

BTC/USD daily chart


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength

Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.

More Cryptocurrencies News
Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook

Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook

Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.

More Cryptocurrencies News
Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing

Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing

Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.

More Ripple News
200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?

200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?

Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.

More Ripple News
Bitcoin: BTC consolidates before a big move

Bitcoin: BTC consolidates before a big move

Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP