Bitcoin has risen for two consecutive days, testing a key resistance level at $88,000 amidst stock market volatility. Increased inflows into Bitcoin ETFs reflect growing interest, despite lower trading volumes. Analysts suggest a potential shift with Bitcoin decoupling from equities, indicating resilience, while cautioning that significant catalysts are needed for further price increases. Key resistance at $88,000 holds, with further potential at $95,900 if cleared.
Bitcoin is currently testing a significant resistance level at $88,000, marking its second consecutive day of gains amidst a recovering stock market. The cryptocurrency has seen an increase of 1.7% today, reaching a price of $88,798.75, following a 3% rise on Monday. This uptick is significant as it brings Bitcoin closer to its highest value since March, amidst recent market volatility triggered by financial policies and tariff announcements.
Alongside this price increase, U.S. exchange-traded funds (ETFs) tracking Bitcoin recorded substantial inflows amounting to $381.4 million on Monday, the largest since January 30, and part of a positive trend with four inflow days in the last five sessions. Notably, Bitcoin has displayed signs of separating from the volatility exhibited by equities earlier this month, showing a 7% increase in April, compared to the S&P 500’s 8% loss.
Analyst Ed Engel from Compass Point highlighted that Bitcoin has demonstrated resilience, contrasting with the S&P 500’s decrease. He noted a lower correlation of 0.65 between Bitcoin and equities recently, compared to historical levels nearing 1.0 during macro sell-offs. Engel cautioned, however, that while this decoupling appears promising, current trading volumes are low, which could inhibit Bitcoin’s potential to surpass the $93,000 resistance without a substantial catalyst.
Chart analyst Katie Stockton indicated that breaching the $88,000 resistance could lead Bitcoin towards the next threshold at $95,900, further illustrating the potential for upward momentum if current trends persist. The market landscape remains complex as Bitcoin navigates through these resistance levels while dealing with external market pressures.
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