Bitcoin: A new kind of ‘low’ after BTC’s correlation with tech stock hits fever pitch

ambcrypto.com:

After days of clinging to the $40k mark for dear life, it appears that Bitcoin is finally making a recovery. As if on cue, most of the top 30 cryptos also found their way into greener pastures. At press time, the king coin was trading at $41,325.34 after rising by 1.17% in 24 hours and rallying by 3.03% over the past week.

This is good news for bulls, without a doubt, but one disclaimer applies. A report from Arcane Research urged investors to remember that Bitcoin’s 30-day-correlation to tech stocks had increased to a level last seen in the summer of 2020. In fact, Bitcoin’s 30-day-correlation to Nasdaq was 0.70. This means that obstacles in the tech sector since the winter of last year have influenced the crypto-market as well. However, the report noted that such a high level of correlation is not likely to last.

On the other hand, Bitcoin’s correlation to gold fell sharply and it is now, in fact, close to all-time-lows. The 30-day correlation clocked in at -0.45.

So, what do the following days have in store for the flagship coin? According to TradingView’s Relative Volatility Index [RVI], volatility is on the upside. This is a good sign for those who want to see Bitcoin turn its current resistance levels into support.

Source: Trading View

Despite this though, investors might not exactly be watching the king coin’s movements with bated breath. Santiment data suggested that Bitcoin’s social volume is being pressed down as BTC continuously moves within the $38,000 and $42,000 range.

Data by @santimentfeed pic.twitter.com/ttcAOHNPcx

— web3analysis.eth (@web3analysis) April 20, 2022

On that note, what are the most influential