Bitcoin's Price Breaks Through Key Support As Stocks Go South
Bitcoin (BTC) has dropped out of the tight trading range seen recently, paralleling losses in the U.S. stock markets. The leading cryptocurrency, which was trapped in a triangle pattern (narrowing range) above $6,400 yesterday, had looked set for a breakout. However, the bullish technical setup failed and BTC found acceptance below the triangle support of $6,430 at 17:30 yesterday. The downward move was possibly linked to risk aversion in the U.S. equities, with the S&P 500 opening on a negative note Thursday and closing with a 1.4 percent loss.
Bitcoin and the S&P have appeared to correlate on and off for almost a year, each taking turns as the leading indicator. Of late, the S&P 500 index has been leading the BTC market by 12 hours or more. At press time, BTC is changing hands at $6,380 on Coinbase, representing a 1.19 percent drop on a 24-hour basis. The triangle breakdown witnessed yesterday may have emboldened the bears. So far, however, the downside has been restricted around $6,350.