Bitcoin gained momentum yesterday, breaking above the $90K level and reaching $94K, with the help of the Asia Pacific (APAC) region markets. Despite reaching this level, the flagship coin could hold its prices at this level. However, according to the correlation between the stock markets and crypto, BTC still has the potential to go higher.
The crypto market got better yesterday as the total market cap reached $3.2 trillion. Reaching this level is quite a feat, as the total market cap has never crossed above this level since November. But just like at other times, the market cap crashed once more below this level.
Unlike the total market cap, which improved and crashed later, the sentiment of the traders got better. CoinMarketCap’s Fear and Greed Index, which gauges the sentiment of the crypto market, moved further away from the fear zone, in the direction of the neutral zone. From showing 25 on its scale yesterday, it moved to 30 towards the neutral zone.
Simultaneously with all these events, Bitcoin reached $94K courtesy of the APAC trading session. A crypto netizen observed a trend of Bitcoin recovering during the Asia trading session while crashing during the US and EU trading sessions.
With this observation, a netizen stated, “Asia is literally the only region keeping Bitcoin afloat right now. While Europe and the US are selling every pump, APAC is the only session providing any net positive return. Every time Asia opens, BTC recovers. Every time US/EU traders show up, they nuke it again.”
But Bitcoin still has some gas in its tank. The Pure Volatility vs Pure Profitability of the stock market has crashed alongside when BTC dipped from $115K to $80K. So, there is a positive correlation between BTC and how the stock markets move.
Since stock market volatility and profitability are beginning to rise, researcher Jordi Visser expects Bitcoin prices to rise once again.
Bitcoin has started a new uptrend, and it is approaching its first resistance level, the 50-day Moving Average (MA), which is at $96.8K. The Relative Strength Index indicator is moving upwards in unison with the prices, establishing the uptrend. If Bitcoin successfully breaks above the $96.8K level, the next resistance is at $103K.
