Bitcoin price before turning point? – Why the crisis is exactly what BTC needs

 Bitcoin price: correlation with S & P500 and gold?

Until the crash, Bitcoin was still an uncorrelated asset. This statement is still correct in the long term. However, given the turbulence on the stock exchanges, the Bitcoin price correlated strongly with the behavior of the S & P500, and at first glance it looks like Bitcoin is uncorrelated. But instead of the BTC moving in a different direction, it seems that Bitcoin is currently leading the way. In other words: BTC becomes an indicator that probably indicates how other assets are moving.While this applies to a few days, on other days we see that Bitcoin behaves exactly like the other assets and thus correlates with them.So little has changed in terms of correlation. So let’s take a look at other potential changes. The key word here is: the entire crypto market.

 

Volume in the entire market is increasing massively

What catches our eye directly is the lower vertical bars. These give us the daily trading volume for the overall market. We can clearly see that the trading volume has increased massively and is still high 21 days after the huge drop in the Bitcoin price. It is approximately twice as high as in December 2019 and three times as high as in December 2018.With regard to the resistance zones, we see very clearly that we are currently fighting with the resistances from December 2019. But let’s get back to volume: the fact that trading volumes are currently high is positive.