It seems that the pressure continues on global markets as major US indices such as the S&P 500, Nasdaq, and the Dow Jones Industrial Average, all took a nosedive following the market’s open today.
Bitcoin continues to correlate with stocks and also dived to a low of $9,875 on Binance. The prices have since recovered but overall sentiment remains shaky.
Bitcoin Dives Below $9,900
There are no boring days in the cryptocurrency market. In less than 48 hours, Bitcoin’s price tanked by almost $1,800, at the time of this writing.
Minutes ago, BTC tanked below $9,900 and reached a low of $9,875 on the world’s leading exchange, Binance.
However, the price has since recovered and is currently trading at around $10,250, still down almost 15% for the past couple of days.
Despite the immediate recovery, $10,000 remains the most important support level to consider right now. As CryptoPotato reported, though, a drop below $10K would likely send BTC into the oversold region of the daily RSI for the first time since the huge Coronavirus-induced crash back in March. This could send a serious buy signal to traders and trigger a lot of bots, that could, in theory, help reverse the trend.
The entire cryptocurrency market is bleeding out as the capitalization continues to shrink, currently sitting at $333 billion. All the top 10 altcoins are underwater with Polkadot’s native DOT token losing 21% of its value in the last 24 hours alone.
Wall Street Leads the Way
Global stock markets have been leading the way for Bitcoin over the past couple of days as the crypto asset decouples from gold and silver.
Today was no different. Come opening hours, major stock indices such as the S&P 500, Nasdaq 100, and the Dow Jones Industrial Average all tanked in a fashion much similar to BTC.
Moreover, they also recovered in the exact same way, making the correlation particularly obvious.