- Analysts believe Bitcoin is on the verge of a breakout
- Bitcoin continues to show correlation with gold and S&P 500
- Analysts point out some factors that could push Bitcoin’s price higher in the near term
Bitcoin News Today – Despite the online sentiment of Bitcoin being at a 2-year low, analysts believe that the digital currency is on the verge of a breakout. The world economy does not seem to be in a good position at the moment. Regarding the digital currency economy, on September 21, the price of Bitcoin plunged by almost 6.5 percent to the $10,300 level after holding gains over the $11k mark for a couple of weeks.
Bitcoin Is Still Correlated with Gold and S&P 500
However, it is interesting to know that the benchmark digital currency plunged in value together with the S&P 500 and gold. From a technical view, the CBOE Volatility Index shows that the implied volatility of the S&P 500 during the timeframe talked about earlier increased quite dramatically. It surged over the $30 mark for the first time in over two months, leading many analysts to say that another crash similar to the one in March is imminent.
The value of gold has also plunged heavily, hitting a 2-month low. Silver also recorded its most significant price plunge in nine years. The recent trends in gold have made commentators believe that people are now towards the USD as a financial safe haven, especially because the USD index has been amazing strong traction recently.
Bitcoin (BTC) Price Today – BTC / USD
Cryptocurrency Has Exhibited Far Greater Volatility than Other Assets
The COO of a digital currency exchange bitFlyer – Joel Edgerton – said that when compared to other assets such as stock options and precious metals, digital currency has exhibited far greater volatility. He added that the BTC/USD trading pair has been sensitive to the movement of the USD as well as any Fed-related topics. The COO said:
“The price movement is mainly driven by institutional business with retail customers continuing to buy the dips and accumulate assets. A key point to watch is the possible effect of the US election and if that changes the Fed’s response from its current very accommodative stance to a more normal stance.”
Edgerton also said that changes in the US tax code could affect the digital currency market directly.
What’s Next for Bitcoin’s Price?
In the recent price plunge, the digital currency found support around the $10,300 mark, resulting in its social media sentiment plunging to a 24-month low. Nevertheless, based on data released by a digital currency analytics company Santiment, Bitcoin tends to see a huge price surge whenever online sentiment around it hovers in the fear, uncertainty, and doubt (FUD) zone. This means an upside move is expected and the digital currency is likely to surge higher in the near term.