Bitcoin (BTC), which is a cryptocurrency, was subjected to the usual selling pressures on Friday when US stocks began reaching new record highs.
The following are key points.
- Bitcoin and cryptocurrency markets are diverging from US stock exchanges, as the Dow Jones is pushing for price discovery on Wall Street.
- Analysis sees further potential upside for stocks coming next, including S&P 500 participants.
- Binance customers take the lead in battling BTC’s price as US demand is weak.
Bitcoin falls at US Open while Dow Jones records new records
TradingView’s data shows that BTC/USD was trading below $77,000 when Wall Street opened, down by nearly 1.2%.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
This move was in line with a pattern seen all week, where US trading began. pressured crypto markets.
BTC price action thus diverged from stocks, which began the day with the Dow Jones Industrial Average hitting fresh all-time highs — a move noticed Donald Trump is the US president.
The S&P 500 and Nasdaq 100 also coiled below new record high levels.
Truth Social
Its latest market commentaryThe trading resource Mosaic Asset Company said that the conditions were favorable to a stock-market rally.
“The average stock has been diverging negatively to the major indexes, which has been limiting breakout trading opportunities,” You can write.
“But an oversold breadth condition is already forming, which is also being confirmed by the MACD applied to the stocks trading above their 20-day MA. That could help spark a rally at least in the near-term and see the average stock catch up.”
S&P 500 data with MACD. Source: Mosaic Asset Company
Mosaic referred to the moving average convergence/divergence indicator and stocks’ 20-day simple moving average.
US Bitcoin Buyers “unable to keep up” Binance
Bitcoin’s Coinbase Premium Index, meanwhile, continued to ring monthly lows. weak US demand.
Related: Bitcoin price record 90-day uptrend ‘resembles bull market rally:’ New analysis
Source: Cointelegraph/X
Commenting, pseudonymous commentator Exitpump noted Binance traders, unlike Coinbase users, aren’t regulated. “stepping in” As buyers.
“The negative value of the $BTC Coinbase Premium is growing larger,” Trader CW wrote on X Data from the previous day and onchain analytics platform CryptoQuant.
“US investors are unable to keep up with Binance’s buying power.”
Bitcoin Coinbase Premium Index. Source: CryptoQuant
CW said that Bitcoin whales’ actions could mean current Bitcoin prices will become a “buying opportunity.
“In general, whales will use negative premiums for accumulating at prices that are lower. The Coinbase whales can now accumulate their funds at a slightly reduced price.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
