The world’s largest cryptocurrency Bitcoin (BTC) is up 5% in a weekend rally moving past $30,000 levels. Last week, Bitcoin continued to move downwards with a major decoupling from the tech stock and the Nasdaq-100.
It looks like with the Sunday gains, Bitcoin is trying to catch up on the lost ground. With the recent gains, BTC has managed to recover the negative gains and currently trading at flat levels on the weekly chart. On the other hand, the Nasdaq 100 ended last week with nearly 7% gains.
Crypto analyst Lark Davis believes that the relief rally was likely. Furthermore, he also explains Bitcoin’s correlation with the Dollar Index.
The Dollar Index $dxy is falling.
Historically this is good for #bitcoin in the opposite way that Dollar rallies are bad for BTC price. pic.twitter.com/7phhxJZNgG
— Lark Davis (@TheCryptoLark) May 30, 2022
Bitcoin (BTC) Heading for New Lows
After the recent price jump, the bigger question is whether Bitcoin could sustain this relief rally. Antoni Trenchev, co-founder and managing partner of crypto lender Nexo believes that Bitcoin is poised to be heading for new lows. Speaking to Bloomberg, Trenchev said:
“This is the type of de-correlation nobody wanted. Bitcoin has yet to test its sub-$26,000 May 12 lows. One senses it’s only a matter of time, given Bitcoin’s failure to mirror the Nasdaq’s gains in the past week.”
In a note to clients, Mark Newton, head of technical strategy at Fundstrat said: “One final pullback to test May 12 lows near $25,401 still looks more likely before any meaningful low is in place”.
Bitcoin along with stock has witnessed a massive price correction in the month of May. However, stocks already started recovering, however, Bitcoin and the broader crypto space continued to head down. If the look at the broader crypto market performance, Bitcoin has been relatively holding the ground while altcoins are crashing as if there’s no tomorrow.
The weight of the global macros is still likely to have an impact on crypto going ahead. The Fed will continue with more rate hikes until the U.S. inflation numbers come under check.
- Peter Schiff Criticizes Bitcoin’s Performance Following Gold’s Rally To New ATH
- Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany’s Movie2K Seizure
- Ethereum Spot ETFs Record $447 Million in Outflows Amid Crypto Market Decline
- World Liberty Financial Discloses Reason for Blacklisting 272 Wallets
- September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data
- HBAR Price Forecast: Analyst Targets 123% Rally as ETF Approval Odds Hit 90%
- Solana Price Prediction: Will Solana Hit $320 as SOL Strategies Gains Nasdaq Approval?
- XRP Price Forecast: Analyst Eyes $127 as BlackRock Joins Ripple Swell 2025
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut