Bitcoin’s Rollercoaster Week
Fresh gains for Bitcoin on August 6 have taken traders and investors on a delightful rollercoaster, as it surged towards the $12,000 mark. Data from various cryptocurrency tracking resources revealed that BTC/USD tackled the challenging price of $11,900, marking a 2.2% increase over 24 hours. Just a few days earlier, the cryptocurrency experienced a heart-stopping plunge, shedding $1,200 in mere minutes.
Breaking Through Resistance
The recent rally shows Bitcoin’s resilience. After battling through resistance zones around $11,300 to $11,400, analysts reported that this new threshold could soon become a stepping stone for further gains. “Let’s see how it goes from here,” shared analyst Michaël van de Poppe on Twitter, reminding us that the crypto world is riddled with uncertainty.
The Quest for Solid Support
As BTC aims for the precarious $12,000 level, many eyes are watching closely. If history repeats itself, flipping this alleged resistance into a solid support might just happen with the same ease that earlier price points did, notably after breaking the $10,500 mark.
Bitcoin and Gold: A Surprising Correlation
In an astonishing twist, Bitcoin is now mimicking its shiny, yellow counterpart—gold. This week marked a new high in the realized correlation between the two assets, hitting an impressive 67.1%. Data sources confirmed this alignment grew significantly from a low of -0.1% just three weeks ago. The meteoric rise of Bitcoin, following gold’s lead, suggests that investors might be viewing Bitcoin as a digital form of the precious metal. At the time of writing, gold has reached skies of $2,065 against the dollar, exceeding what analysts initially deemed possible.
Goodbye Correlation With Stocks?
While it seems Bitcoin is busy flirting with gold, there’s murmuring in the background regarding its correlation with the stock market. Previously, BTC and the S&P 500 were nearly inseparable, boasting a correlation of around 95%. However, one analyst boldly declared this relationship is now a thing of the past as Bitcoin’s behavior shifts towards that of a safe-haven asset instead. Will Bitcoin ditch its stock friends for a cozy relationship with gold? Only time will tell!
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