- BTC pioneer Max Keiser said that the coin is inversely correlated to the USD and not the stock market.
- The daily confluence detector shows one strong resistance level at $10,800.
Bitcoin is highly unlikely to drop below $6.7K – Analyst PlanB
Quant analyst PlanB recently took to Twitter to say that Bitcoin is highly unlikely to drop below $6,700. The analyst referenced the 200-week moving average (200MA) for BTC/USD to come to this conclusion. The 200MA has never been broken during Bitcoin price downtrends.
As long as historic behavior continues as it has done so far, $6,700 will now form a definitive price floor.
#Bitcoin 200 week moving average: $6700 pic.twitter.com/10ev8haKq8
— PlanB (@100trillionUSD) September 22, 2020
PlanB added that in March 2017, Bitcoin found it challenging to clear the vital $1,000 mark. However, after succeeding, the all-time highs of $20,000 arrived by the end of the year. After publishing the 200MA update, PlanB posted an online survey about future BTC price action. The survey attracted 14,000 responses.
Are you:
— PlanB (@100trillionUSD) September 22, 2020
- bitcoin or crypto?
- bullish or bearish BTC next 12 months?
The majority (59.2%) is bullish about Bitcoin over the next year. They also favor BTC over other cryptocurrencies. In total, over 92% of respondents are bullish when it comes to BTC/USD.
BTC pioneer says the coin is inversely correlated to the USD, not the stock market
Max Keiser, a BTC pioneer and analyst, recently noted that Bitcoin is not correlated to the stock market. Keiser’s comments came in response to a Twitter user who said that Bitcoin follows USD's movement. In the tweet, the user noted that “when stock markets go down, bitcoin gets pummeled.” Keiser responded that BTC is inversely correlated to the USD, not the stock market.
#Bitcoin, like Gild, is inversely correlated to the $USD - *not* the stock market.
— Max Keiser (@maxkeiser) September 22, 2020
Don’t be fooled by randomness https://t.co/UIbu7hiW5m
Keiser is not the only one who shares this opinion. Many Bitcoiners pointed to March 12 (Black Thursday) when digital assets crashed by nearly 40%. While global markets were also in the red, Bitcoin recovered and grew faster than stocks.
Markets.bitcoin.com data shows that BTC nearly doubled in value between March and September 2020. On March 21, Bitcoin traded at $5,792. On September 21, the leading digital asset sold at $10,499.
In comparison, the Dow Jones Industrial Average (DJIA) closed March 20 at 19,173 points. DJIA is the benchmark index in the US for blue-chip stocks. The same index closed September 21 at 27,147 points, representing a growth of 41.5% from March.
This data has convinced some Bitcoiners that the coin has an inverse relationship with fiat currencies such as the USD.
BTC/USD 12-hour chart
In the 12-hour chart, BTC/USD has dropped from $10,744 to $10,695 following two straight bullish sessions wherein the price bounced up from the $10,223.42 support line and breaking above the SMA 200 and SMA 50 curves. Currently, the price has met resistance at the SMA 20 and dropped down. The buyers will need to protect the support at the SMA 50 curve to prevent further downtrend.
BTC on-chain
#1 Age consumed
Sentiment’s “age consumed” is a useful metric that can help us predict any sharp price movement. As you can clearly see, there was a spike this Thursday where age consumed jumped up to 2.3M, which triggered an uptrend.
#2 New addresses
The number of new addresses entering the system has remained remarkably consistent over the last three months. The number of new addresses has flirted around 480,000 during this time period. There was a spike on 1st September 2020 in this period, wherein the new addresses entering the system rose up to 572.25k. The number of new addresses entering the system has a positive effect on the price. Since there has been no significant spike in new addresses entering the ecosystem in recent times, there has been no big spike in the price either. As of press time, around 495k addresses have been created, which pretty much fits this mold.
BTC daily confluence detector
The daily confluence detector is a helpful tool that helps us predict the price movement of BTC. As per the tool, the premier cryptocurrency faces strong resistance at $10,800. This level has the one-hour Previous High.
On the downside, there are two healthy support levels at $10,600 - with the Previous Month low - and $10,500. These two support levels have enough juice to counter selling pressure. However, if the buyers break above the $10,800-level, the price should be able to cross the $11,000-level.
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
Editors’ Picks
![Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-37949586_XtraSmall.jpg)
Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs
Bitcoin, Ethereum, and XRP hover around key support levels after registering a steep correction earlier this week. TRON network’s stablecoin activity hit new highs following the release of SunPump. TRON trades at around $0.1500, almost flat on the day.
![Bitcoin Weekly Forecast: $50,000 on the horizon if it breaks below key support level](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin Weekly Forecast: $50,000 on the horizon if it breaks below key support level
Bitcoin price tests the key support level at $56,000 on Friday, consolidating over a 1% decline this week. If it drops below this support, a continued downtrend is likely for BTC, as suggested by substantial outflows from US spot Bitcoin ETFs, rising institutional selling, and bearish on-chain indicators.
![Vitalik Buterin says all Layer-2 token holdings will be donated to charity, won’t sell for profit](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_04_XtraSmall.jpg)
Vitalik Buterin says all Layer-2 token holdings will be donated to charity, won’t sell for profit
Vitalik Buterin, Ethereum co-founder, has not sold Ether since the altcoin’s ICO in 2018. On-chain transfers by Buterin make headlines as ETH holders keep eyes peeled for selling pressure on the altcoin.
![WazirX, PenPie and Bo Shen hackers launder $42.7 million in stolen funds through Tornado Cash](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_4_XtraSmall.jpg)
WazirX, PenPie and Bo Shen hackers launder $42.7 million in stolen funds through Tornado Cash
Three different hackers responsible for the exploit of crypto assets worth millions of dollars from crypto exchange WazirX, DeFi protocol Penpie, and Founder of Fenbushi Capital Bo Shen are using Tornado Cash to move part of the stolen funds.
![Bitcoin: $50,000 on the horizon if it breaks below key support level](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin: $50,000 on the horizon if it breaks below key support level
Bitcoin (BTC) price tests the key support level at $56,000 on Friday, consolidating over a 1% decline this week. If it drops below this support, a continued downtrend is likely for BTC, as suggested by substantial outflows from US spot Bitcoin ETFs, rising institutional selling, and bearish on-chain indicators.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.