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3 Bitcoin price metrics suggest Sept. 9’s 10% pump marked the final cycle bottom

Published 09/09/2022, 03:32 PM
Updated 09/11/2022, 06:00 PM
3 Bitcoin price metrics suggest Sept. 9’s 10% pump marked the final cycle bottom
BTC/USD
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The correlation between Bitcoin (BTC) and stock markets has been unusually high since mid-March, meaning the two asset classes have presented near-identical directional movement. This data might explain why the 10% rally above $21,000 is being dismissed by most traders, especially considering S&P 500 futures gained 4% in two days. However, Bitcoin trading activity and the derivatives market strongly support the recent gains.

Curiously, the current Bitcoin rally happened a day after the White House Office of Science and Technology Policy released a report investigating the energy usage associated with digital assets. The study recommended enforcing energy reliability and efficiency standards. It also suggested federal agencies provide technical assistance and initiate a collaborative process with the industry.

Bitcoin/USD (orange, left) vs. S&P 500 futures (blue). Source: TradingView
Bitcoin futures 24-hour liquidation data. Source: CoinGlass
Bitcoin dominance. Source: TradingView
Bitcoin 60-day options 25% delta skew: Source: Laevitas.ch

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