Bitcoin’s inability to capture the critical resistance near $10,500 continued today as the asset plunged below the $10K support for a short while. The bears attempted to invalidate this crucial support by pushing the bitcoin price to $9,900.
Interestingly, the slip in BTC markets appeared in tandem with stock markets, as futures tied to the S&P 500 plunged by 5.3%. Furthermore, investors witnessed more carnage in the Tech-savvy Nasdaq Composite, which slipped by 1.27% in premarket trading.
The uncanny correlation between bitcoin and US stocks could be attributable to sellers who suffered losses in the equities, trading all valuable assets in their possession, including BTC, for a rebounding US dollar.
This selloff has played a vital role in sending the BTC/USD pair down from recent highs of $12K seen just a week ago.
At the time of this article’s writing, BTC is trading at $10,150, marking slow and sideways action above $10K carrying on for days.
The supposed correlation between bitcoin prices and legacy markets caught the attention of on-chain analytics firm glassnode.com. They wrote in their latest weekly report:
“In the weeks to come, investors should be cognizant of movements in the stock market as a supplement to on-chain fundamentals in determining the expected behavior of bitcoin and crypto markets in general.”
Bitcoin Price Poised for Accumulation Phase
BTC on-chain analysis shared by crypto trader “IncomeSharks” shows the king coin entering an accumulation phase as selling pressure subsides.
BTC’s on-balance volume by crypto analyst IncomeSharks | Source TradingView
This metric indicates that more investors could buy the BTC dip in the next few weeks. An accumulation phase is bullish for the bitcoin price indicating that the asset will likely rally higher in the coming weeks and recapture the $11K trading range.
TRX Price Up By Over 11%
As bitcoin prices stagnated in a tight range on Tuesday, Tron’s TRX was among the top gainers. Its value climbed up to 11.38%. with the TRXUSD pair currently trading at the price of $0.345.
This jump came as the blockchain project joined the ongoing DeFi craze after Tron CEO Justin Sun locked 6.7 billion TRX tokens in the SUN genesis mining pool.
The recent entry of Tron into DeFi has likely prompted traders to hedge into TRX markets, thus causing a price surge.
Moreover, Justin Sun effectively removed a considerable portion of TRX tokens from the market, leading to demand outstripping supply and resulting in the price rally.