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If stocks bounce, will Bitcoin follow?

  • Bitcoin and the S&P 500 move in a direct correlation 
  • The recent corrections look like an Elliott Waves a-b-c
  • If stocks make a new high for the year, Bitcoin will follow

US stocks rallied in 2023, and so did Bitcoin. One may ask what market is leading, and the answer is the stock market.

The S&P 500 index appears to have made a double top this month, but if the correlation with Bitcoin holds, then the double top would be invalidated by stocks making a new high.

So far, the 4,150 area proved to be resistance, but it might just be that the market forms an ascending triangle. If we look at how Bitcoin reacted to the S&P 500 rally, the recent correction is just part of an a-b-c structure, familiar to those using the Elliott Waves theory to trade financial markets.

S&P500 chart by TradingView

Flat patterns point to more upside

A flat pattern is a corrective wave labeled as an a-b-c. Elliott traders use letters to count corrective structures.

Only in this case, the flat pattern has two corrective waves of a lower degree (i.e., waves a and b), and one impulsive (i.e., the c-wave).

In other words, it means that the next wave of the same degree will fully retrace the stock market’s decline from this year’s highs. Given the direct correlation between the S&P 500 and Bitcoin, it means that Bitcoin will do the same and make a new high for the year.

To answer this article’s question, Bitcoin would follow the stocks lead if the S&P 500 bounces from the current lows.

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Liquity surges 64% in 24h – will it make a new all-time high?

  • Liquity surged more than 60% in the last 24h
  • Parity plays a pivotal level 
  • A move above $3 should not be ruled out

The top gainer in the last 24h in the cryptocurrency market is Liquity – a decentralized borrowing protocol that allows drawing interest-free loans against Ether. It gained over 60% against the US dollar and now threatens to break the all-time high.

According to the official Liquity documentation, investors get access to an immutable, capital-efficient, and fully decentralized protocol.

So does it make sense to buy Liquity after this rally? Or is the 2022 bear market still in place?

LQTUSD chart by TradingView

Parity turned out to be a pivotal level

Since its inception, Liquity has suffered from the overall bearishness seen in the cryptocurrency market. From $3, the price dropped to below $0.6 as each rally was met with further selling.

But one thing is worth mentioning just after having a simple look at the chart above. That is, the effect the parity level had on the price action.

More precisely, parity played a pivotal role. While below, it offered resistance. While above, the price met support.

Therefore, the breakout above parity seen in the last several days led to the surge that made headlines. $2.8 capped the price so far, but Liquity’s rally may continue while above parity.

All in all, the technical picture is bullish while Liquity trades above parity. On a move below, the narrative changes dramatically.

The post Liquity surges 64% in 24h – will it make a new all-time high? appeared first on CoinJournal.

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Stacks price prediction: STX is primed for the upcoming Bitcoin halving

  • Stacks price has soared in the aftermath of interest in Bitcoin NFTs with the launch of Ordinals.
  • STX rose to an all-time high of $3.39 in December 2021.
  • Analysts say the upcoming Bitcoin halving could catalyse fresh rallies for the token.

Stacks, the Bitcoin layer that leverages smart contracts to enable decentralised finance (DeFi) and non-fungible tokens (NFTs) among other decentralized applications on the pioneer blockchain network, is currently one of the best performing assets in the market today.

The native STX is higher by more than 43% on the week even as most tokens struggle with downward pressure.

Stacks price: STX poised for BTC halving explosion?

The Stacks price has been rallying due to massive interest in Bitcoin-based NFTs and recently after the protocol released its whitepapers. The token’s price has in fact gained significant traction following the hype around the launch of the Ordinals project.

Ordinals is a novel NFTs protocol that allows for the minting and storage of digital artifacts on the Bitcoin blockchain. The huge interest that greeted the Ordinals’ launch helped push the price of STX as demand for the layer 2 blockchain Stacks’ native token skyrocketed.

Stacks Network’s leveraging of Bitcoin’s blockchain security and permanence, the idea of Bitcoin NFTs and DeFi are factors helping position STX for more upside action. But more than that, analysts predict that the STX price could see another explosive move as Bitcoin’s halving, which is about a year away, approaches.

Bitcoin price has rallied going into the halving and this looks to be the trajectory STX will take. As for now, market analysts say there’s a “cultural shift in Bitcoin”, and that sentiment might catalyse a huge move for STX.

STX price today

The native token STX is up more than 43% in the past week and tops the 100 largest cryptocurrencies by market cap in weekly performance.

While the STX/USD pair has retreated nearly 3% in the past 24 hours, the token’s price as at 8.20 am ET on 28 February was $0.89, showing a 3.5% jump on the hourly time frame.

And with over 200% gains in the past 30 days, Stacks has quickly risen up the charts in terms of market cap (currently at over $1.2 billion and ranked 47th on CoinGecko.)

The post Stacks price prediction: STX is primed for the upcoming Bitcoin halving appeared first on CoinJournal.