Since recovering from this week’s drop to $8,900, Bitcoin (BTC) price has struggled to gain above $9,600, but on-chain data and market correlations show investors remain bullish.
In fact, Alistair Milne, CIO of the Altana Digital Currency Fund, noted that there is an extra-large number of BTC bids on Bitfinex’s order book, highlighting the bullish sentiment around BTC.
Data from glassnode also confirm this narrative, showing that 78.9% of crypto investors are still profiting from their Bitcoin positions.
Nevertheless, some traders and investors are anxious about the apparent BTC correlation to the stock market, suggesting that this could damage the use case narrative of the coin as a store of value.
The correlation was most apparent on June 15, when BTC prices plunged below the $9K mark amid heavy losses in the U.S stock market.
Meanwhile, others consider the correlation as a good sign as it shows the top-ranked crypto is making progress by an upsurge in its representation across numerous traditional markets.
For instance, the CEO of Blockware solutions, Matt D’Souza, recently explained that the BTC correlation to stocks shows that the coin is included in a growing range of institutional and retail portfolios, highlighting the asset’s investment utility in hedging against short-term market instability.
A Huge Bitcoin Move Is Looming
Bitcoin has been stuck in a tight consolidation pattern over the past weeks, with prices barely deviating from a fairly tight $2K range. Nevertheless, a big move seems to be looming, according to crypto analyst Pentosh who stated:
“We have spent 49 days today inside this exact range shown. The move when it comes should be massive. Position accordingly.”
With BTC currently sitting inside the $9,200-9,400 range, it looks like that the breakout could be in either direction.
But at the moment, the sentiment on BTC seems to be leaning more towards the bullish side. The top-ranked coin is trading at $9427 during press time.
Looking ahead, immediate resistance is near the $9,500 level, above which the bulls are likely to aim for a clear break above the $9,600 resistance zone.
The next major resistance is seen near the $9,800 level, followed by the important $10K barrier.
Downside Break Could Negate Bullish View
Despite the current bullish view, there is a risk of another bearish reaction if BTC struggles to surpass the channel resistance at $9,500.
With the next level of support being at around $9,250, a downside break below this point could negate the current bullish view. In this case, the price could continue to decline towards $9,050.