Bitcoin Has Now 100% Recovered From $3.7K Lows, Decoupling From Stocks – Cointelegraph

Bitcoin (BTC) tested support at $7,500 on April 24 after a surprise surge saw the cryptocurrency beat out resistance and reliance on stocks.

Cryptocurrency market daily overview. Source: Coin360

Data from Coin360 and Cointelegraph Markets showed BTC/USD attempting to form new support at $7,500 on Thursday.

Since hitting a high of $7,760 the day before, only three brief dips to the $7,400 zone have appeared, indicating renewed market strength.

The high was Bitcoins best performance since mid-March, when markets infamously crashed up to 60%, in line with mayhem in traditional assets.

Bitcoin 1-day price chart. Source: Coin360

Since then, Bitcoin has slowly attempted to exit correlation with stocks and bonds, with Wednesdays boost sharply contrasting with misery on oil markets and foreboding among traders.

The S&P 500, for example, saw a sharp contraction in mid-day trading due to news that a pharmaceutical company allegedly harboring an effective coronavirus cure did not, in fact, have one.

Bitcoin versus the S&P 500 3-month chart. Source: Skew

Against a backdrop of continued uncertainty, Bitcoin, therefore, looked all the more impressive year-to-date, the cryptocurrency was up $300 or 4.2% at press time. Versus its March lows, BTC/USD was up over 100%.

If we make some nicer slow retracements in the coming few days, Im assuming we might even be going towards $8,400 or $9,000, as there is a CME gap over there which is a narrative for traders, Cointelegraph Markets analyst Michal van de Poppe forecast in his latest trading video on Wednesday.

But if we close the daily below $7,400, then Im assuming this to be one big trap, and Im probably even considering any shorts again.

In the event, Bitcoin did not see a daily close at lower levels.

Meanwhile, another theory surfacing among traders on social media focused on Bitcoins resemblance to the Nasdaq during and after the Dotcom Bubble.

So far this is textbook V-bottom, a popular Twitter-based analyst summarized about Bitcoins March bottom uploading comparative charts.

More:
Bitcoin Has Now 100% Recovered From $3.7K Lows, Decoupling From Stocks - Cointelegraph