The volatility of the cryptocurrency market has become its main characteristic. However, in the last 48 hours, Bitcoin has shown immense resilience around 11,500 levels. Currently, as well, it is trading around those levels. The volatility is pretty less.
The main reason why it is stagnated around the current levels is that the current levels have a lot of resistance. There are consistent resistances between $ 11,400-$ 11,700. This is the main reason why it is not able to cross the levels on the higher side.
Many investors are starting to believe that Bitcoin, as well as stock markets, are related as well. There are plenty of instances when both moved in tandem. However, according to Nick Colas, the stock markets are not at all related to Bitcoin.
According to co-founder of DataTrek Research, is there is no direct relation or any proportional relationship in the price of Bitcoin and stock market.
Even though during the recent rise of Bitcoin, the stock markets rose as well but that was just a coincidence.
With Bitcoin being stuck around the current levels, many people are looking at the stock market for a cue. However, the correlation between stock markets and Bitcoin is nothing but a coincidence.
This is the reason why investors need to monitor the levels and the technical indicators rather than looking at the stock market.
The current levels seem to be pretty important for Bitcoin.
If it is not able to cross these levels, it can fall all the way back to $ 9300. This is the reason why many of the traders are closely looking at these levels as well. On the other hand, if these levels can be crossed, it can move much higher to around $ 15,000. Once it is $ 15,000, the momentum will be pretty huge.
Many investors will try to buy the Bitcoin once again. There will also be hopes that it will be able to cross the earlier highs as well. This is one of the main reasons why these levels are eagerly watched as well.
Also, so far in the last 24 hours, it is able to sustain around $ 11,500. However, the lack of volatility is also worrying many traders. This indicates that the momentum has been lost at the current levels.
This is a worrying factor as, if the momentum is not present, the resistance cannot be crossed by Bitcoin. The next 48 hours will actually be pretty crucial for Bitcoin as they will decide whether it is able to cross these levels or not.
David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.