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.”
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.”
*Not investment advice.