- Recently, there was a spike in BTC’s correlation with precious metals.
- On a daily chart, BTC selling pressure was greater than buying pressure.
From Bitcoin [BTC] Its correlation to precious metals such as gold and silver has seen a noticeable increase recently, according to data from IntoTheBlock showed.
1/ #Bitcoin and precious metals have shown a noticeable increase in correlation lately🪙🧵 pic.twitter.com/PLFro4OVa3
— IntoTheBlock (@intotheblock) May 19, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
This indicated that the price movements of BTC, gold, and silver were more closely aligned as both investors and traders began to see the similarities between these asset classes, causing them to move simultaneously.
In a report of Glasnode published on April 17, the on-chain data analytics firm noted that over the past year, the “correlation between the performance of BTC prices, relative to gold, the traditional safe haven for sound money” has increased.
According to Glassnode, an observation of the positive correlation on different time frames, such as 30 days, 90 days, and 365 days, revealed that the link remained elevated during the recent US banking crisis.
Glassnode noted,
“This suggests that an appreciation for both sound money and the reality of counterparty risk is increasingly at the forefront of investors’ minds.”
Source: Glassnode
On April 26 tknowsaid cryptocurrency market data provider Kaiko that on a 30-day average, BTC’s correlation to gold has been on the rise since March and is at its highest level in about two years.
Bitcoin’s 30-day rolling correlation to gold has surged since March and now stands at 57% — the highest level in nearly 2 years.#BTC #Gold #correlation pic.twitter.com/l7N5eYAgEl
— Kaiko (@KaikoData) April 26, 2023
BTC is struggling to entice buyers
The price of BTC fell to the price of $26,000 two days ago and has fluctuated within a narrow range ever since. An assessment of the coin’s price movement revealed that the king coin has since traded at $26,800 and $26,900 price marks.
At the time of writing, it changed hands at $26,862.52, representing a 30% drop in trading volume over the past 24 hours and a price drop of 0.19% over the same period.
With the weighted sentiment of the coin at -0.566 at the time of writing, data from Santiment confirmed investors’ lack of interest in accumulating BTC.
As indicated by key momentum indicators on the coin’s daily chart, this has caused selling pressure to outweigh accumulation.
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BTC’s Relative Strength Index (RSI) was 40.48 at press time, below the 50 neutral position. Similarly, the Money Flow Index (MFI) was positioned in a downward trend, moving closer and closer to the oversold position at 30.13.
Furthermore, the price of BTC was approaching the lower band of its Bollinger Bands indicator at the time of writing. This suggested that the price of the coin was approaching a potential support level or period of consolidation.
Source: BTC/USDT on TradingView