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How Bitcoin’s strong correlation to stocks could trigger a drop to $8,000

Published 07/13/2022, 03:35 PM
Updated 07/13/2022, 05:21 PM
How Bitcoin’s strong correlation to stocks could trigger a drop to $8,000
BTC/USD
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The Bitcoin (BTC) price chart from the past couple of months reflects nothing more than a bearish outlook and it’s no secret that the cryptocurrency has consistently made lower lows since breaching $48,000 in late March.

Bitcoin price in USD. Source: TradingView

Curiously, the difference in support levels has been getting wider as the correction continues to drain investor confidence and risk appetite. For example, the latest $19,000 baseline is almost $10,000 away from the previous support. So if the same movement is bound to happen, the next logical price level would be $8,000.

BTC CME 1-month forward contract premium vs. Coinbase/USD. Source: TradingView
Exchanges top traders Bitcoin long-to-short ratio. Source: Coinglass

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