A popular crypto analyst says the correlation between tech stocks and Bitcoin (BTC) has been “exceptionally high” in the past few months.
In a new video, crypto analyst Benjamin Cowen tells his 729,000 YouTube subscribers that BTC is trading below its bull-market support band against the dollar.
The bull-market support band is a technical indicator combining the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA).
However, it’s not the same case for Bitcoin’s chart against the Nasdaq. Explains Cowen,
“The valuation of Bitcoin against the Nasdaq actually shows it’s above some of these shorter-term moving averages. In fact, it seems like the Bitcoin valuation against the Nasdaq is sort of building up to something. The window that it’s moving between is getting smaller as time goes on…
If you extend this out you can see that they will ultimately converge by the beginning of 2023.”
The analyst notes BTC has been putting in higher lows and lower highs against the Nasdaq since late 2020.
Cowen predicts Bitcoin is “more likely” to break up against the Nasdaq than down. He bases that prediction on BTC’s massive historical gains against the index.
Bitcoin is trading at $38,343.77 at time of writing, down 5.57% in the past 24 hours. The top-ranked crypto asset by market cap is down more than 7% in the past week.