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Bitcoin dips below $114.5K while Gold and Stocks head higher

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Bitcoin and Solana Will Hit Parabolic Levels if Their Cup-and-Handle
Bitcoin and Solana Will Hit Parabolic Levels if Their Cup-and-Handle

Important points

  • Bitcoin is a different currency than stocks or gold, with daily losses of around 2% at the start of this week.

  • Analysts hope that the Federal Reserve will boost BTC prices with its upcoming decision on interest rates.

  • BTC’s price rise is supported by hidden bullish divergences.

BitcoinBTCAs analysis showed further BTC price decline, the BTC market opened Monday on Wall Street at just $115,000.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

BTC Price Sees “classic” downside into FOMC

The following data is from Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC/USD fell up to 2 % compared with the highs of the day.

Bitcoin diverged from both gold and US stocks, with the S&P 500 and Nasdaq Composite Index both gaining at the open. Gold prices have now reached $3,655, which is under $20 off their all-time highs.

XAU/USD one-day chart. Source: Cointelegraph/TradingView

Commenting, crypto trader, analyst and entrepreneur Michaël van de Poppe tied BTC price weakness to the week’s key macroeconomic event.

Bitcoin is traditionally traded down in US Federal Reserve interest rate decisions, according to him.

“Very classic price action prior to the FOMC meeting,” He wrote In part, a blog post about X. 

“Very likely we’ll continue to correct on $BTC & Altcoins until the FOMC meeting has passed.”

BTC/USD daily chart, with FOMC meetings marked. Source: Cointelegraph/TradingView

Van de Poppe said that the Federal Open Market Committee (FOMC) was influenced by the markets. deliver a 0.25% rate cut On Wednesday, 

While some participants in the crypto markets expressed their dismay that Bitcoin failed to follow risk assets and rally at the start the week, other looked for bullish chart indicators.

One of these hidden divergences was the bullish divergence in relative strength index.RSI() in weekly timeframes.

“Bitcoin weekly hidden bullish divergence is now confirmed,” Popular trader BitBull reported. 

“Since 2023, every bullish or hidden bullish divergence has played out for $BTC and resulted in big gains.”

BTC/USDT weekly chart with RSI. Source: BitBull/X

Merlijn, a fellow trader argued The RSI divergence was a sign that the macro-picture was not accurate “screaming continuation” BTC prices are rising. “inevitable.”

Bitcoin mood neutral as stocks rise “wall of worry”

The market sentiment at the beginning of the week was one similarity that Bitcoin shares with stocks.

Related: BTC ‘pricing in’ what’s coming: 5 things to know in Bitcoin this week

Despite the S&P 500 reaching new highs and Bitcoin being not far below price discovery, sentiment was “leaning bearish.”

“If anything, several measures of sentiment shows that fear is the prevailing emotion,” The latest issue of Mosaic Asset Company’s regular newsletter has been published.The Market Mosaic.”

Mosaic noticed that the net position of large investors in various futures stocks was negative. “where positioning in the group is seen as a contrarian signal.” 

“Various measures of sentiment are a tailwind for stock prices as the market climbs a wall of worry,” Additions 

Investor futures positions (screenshot). Source: Mosaic Asset Company

It is important to note that the word “you” means “the”. Crypto Fear & Greed Index Price action was neutral, at 53/100. It is not near the overheated 95/100 levels that are associated with price movements close to all-time highs.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.