Last week witnessed a much-needed rise in Ethereum and Bitcoin prices. ETHUSD increased by 15.64%, whereas BTCUSD increased by 14.54%. Last week was also the time when Wall Street kept declining rapidly. NASDAQ turned negative for the year with that fall.
This week, however, the tables have turned. Wall Street posted handsome gains on opening day, Monday. The Dow Jones Industrial Average Index (DJX) was up by more than 900 points by the end of the trading day. BTCUSD, ETHUSD declined by around 2% in that time.
Positive Correlation: no more between the Dow Jones and Bitcoin
BTCUSD was in a strong correlation with the Dow Jones earlier throughout the year. It was the time when the number of Coronavirus cases in the US started reaching massive levels.
However, currently, the US has passed its peak in the number of cases. And lockdown restrictions are getting lifted. In the hope of an economic revival soon, the stock markets are gaining.
We can see the complete different directions in which each is moving if we look at the hourly-chart and compare the USD and Bitcoin.
Bitcoin is not bearish at the moment
The Dow’s rise may have witnessed the decline of BTCUSD. However, long-term investors need not worry. At least not yet!
Bitcoin has reliable support zones in the form of the 20-period Exponential Moving Average at $9233, and another at $8913. These will arrest Bitcoin’s fall.
Both the MACD and RSI indicators appear to be neutral in the short term.
Bitcoin might not be bearish right now. However, it is neither bullish. BTCUSD investors might see Bitcoin consolidating for some time before witnessing any significant movements.