- Bitcoin hit a new milestone as correlation with big technology stocks hits an all-time high.
- The 40-day correlation between Bitcoin and Nasdaq 100 index hit 0.6945 on April 8.
- Analysts predict Bitcoin price could hit $52,000, making a u-turn in its bearish trend.
Bitcoin price could experience a trend reversal as correlation with the Nasdaq 100 hits a key milestone. Analysts are bullish on the Bitcoin price rally, and have set a target of $52,000 for BTC.
Bitcoin price could break into a rally to $52,000
Bitcoin price has consistently moved in the same direction as the Nasdaq 100 index for over six months. Analysts at Bloomberg believe Bitcoin is more in unison with big technology stocks than ever before.
The 40-day correlation between Bitcoin and Nasdaq 100 hit an all-time high of 0.6945 last Friday. The rise in correlation erodes the argument that Bitcoin is a diversifier of assets in an investor's portfolio. However, an increase in this correlation has historically pushed Bitcoin price higher.
In previous bull runs, 2017 and 2020, Bitcoin's correlation with tech stocks has fueled price rallies in the asset. The demand for Bitcoin has climbed consistently with the rise in correlation with Nasdaq 100 stocks.
Bitcoin price recently plummeted to $41,000. Proponents believe factors like increasing outflow from cryptocurrency exchanges, activity in Satoshi-era Bitcoin wallets and the rising correlation with technology stocks could drive the asset's price higher.
@Koolaid_crypto, a pseudonymous crypto analyst, believes Bitcoin encountered selling pressure over the weekend, and a macro formation that looked like a descending broadening wedge. The analyst believes Bitcoin price could test the 61.8% Fibonacci retracement level at some point and reveals a bullish outlook on BTC.
FXStreet analysts have evaluated the weekly Bitcoin price chart, predicting a rally to $52,000. Even though analysts believe a weekly close below $42,000 would indicate a bearish trend reversal, they foresee the Bitcoin price on track to target the $52,000 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why LIBRA meme coin promoted by Argentina President Milei is crashing?
LIBRA meme coin promoted by Argentina’s President Javier Milei is making headlines again, crashing nearly 15% on the day. A local Argentine media outlet, Perfil, reported that lawyer Gregorio Dalbón had requested Interpol for a red notice to be issued for Hayden Davis.
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation
Metaverse tokens Sandbox, Decentraland and Axie Infinity continue to face correction since they topped in early December. A Glassnode report suggests that despite price pullback, on-chain activity suggests holders accumulation.
DeFi user loses over $700K USDC in a sandwich attack that experts suggest could be money laundering
A DeFi trader became the subject of discussion among crypto community members on Wednesday after losing more than $700K worth of stablecoins to a sandwich attack on the Uniswap v3 protocol.
Tether on-chain activity surges to a six-month high with 143,000 daily transfers
Tether (USDT) stablecoin on-chain activity has rapidly risen, with over 143,000 daily transfers, surging to a 6-month high. Moreover, the USDT Network growth metric increases, indicating greater blockchain usage.
Bitcoin: Will Trump's Strategic Bitcoin Reserve and White House Crypto Summit support BTC recovery?
Bitcoin price extends its decline on Friday, falling over 5% so far this week. BTC uncertainty and volatility spikes liquidated $1.67 billion as the first-ever White House Crypto Summit takes place on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.