While Bitcoin, the leading cryptocurrency, has been consolidating between $ 29,000 and $ 30,000 for a while, BTC dropped to $ 29,000 with a drop yesterday.
A positive data came from Santiment as this sudden pullback worried investors about further declines.
Comparing Bitcoin to the S&P 500, Santiment said that while BTC was consolidating, it actually outperformed the US stock market.
According to Santiment, BTC is showing a steady trend while consolidating at $29,400, revealing that it outperformed equity markets like the S&P 500 in August.
At this point, Santiment stated that the correlation between BTC and S&P 500 has weakened and stated that this weakness has historically been positive for cryptocurrency prices.
“Bitcoin remains in a narrow price range at $29.4k. However, this consolidation move actually reveals that it has outperformed equity markets like the S&P 500 in August.
The correlation break that started in mid-July has historically been positively reflected in cryptocurrency prices.”
📊 #Bitcoin continues to stay in a tight price range at $29.4k, but this flat behavior is actually outperforming equities markets like the #SP500 here in August. The correlation break that began in mid-July is historically beneficial to #crypto prices. https://t.co/94iKuzxhP6 pic.twitter.com/WFE7HJ0ys6
— Santiment (@santimentfeed) August 16, 2023
Santiment also evaluated the decline in altcoins after BTC's correction.
“As markets continue to lack any traction for a rally, investors are showing more indifference towards cryptocurrencies.
Historically, more out-of-the-money trades than profit-making trades increase the likelihood of price jumps.”
📉 Traders are showing more and more complacency among each asset as markets continue to fail to find any traction on a rally. Historically, this high ratio of loss transactions compared to any profit taking raises the probability of a bounce. https://t.co/0R7UWRc3OL pic.twitter.com/ydHWzmlJNN
— Santiment (@santimentfeed) August 16, 2023
*Not investment advice.
