Bitcoin (BTC) price took a positive turn on March 10 as the cryptocurrency climbed to $8,150 before facing resistance that pushed the price back to $7,730.
Meanwhile, the S&P 500 and Dow Jones followed suit, leaping at the opening bell before quickly pulling back later on the day.
All indices closed on a positive note, probably driven by news that President Donald Trump plans to shore up the US economy by expanding assistance programs to key industries, as well as proposing a payroll tax to support workers affected by the adverse business impact of COVID-19.
Crypto enthusiasts who believe that the Bitcoin is like a hedge against traditional market fluctuation are closely watching the cryptocurrency to see how it behaves during the latest correction.
The BTC has been moving in line with the equity markets over the past two weeks, but Skew data shows that the cryptocurrency returns are still up 9.45% in 2020, but the S&P 500 has fallen by 10.79%.
For those who think BTC is “digital gold,” data reveals the two currencies out of step on the monthly time frame. However, both BTC and gold rose 9.45 percent and 8.82 percent in 2020.
Unsurprisingly, Bitcoin skeptic Peter Schiff thinks otherwise, he said on his twitter account:
“Bitcoin is no longer a non-correlated asset. It’s positively correlated to risk assets like equities, and negatively correlated to safe-haven assets like gold. When risk assets go down, Bitcoin goes down more. But when risk assets go up, Bitcoin goes up less. No value in that!”
Positive outlook in short-term
The cryptocurrency is currently holding position close to the Fibonacci retracement point of 61.8 percent ($7,978).
If the market can rise above $8,120 and reverse the resistance of $8,200 to support, the volume profile visible range indicates that the BTC could reach $8,600 by leveraging the volume gap from $8,100 to $8,600 before facing resistance.
In addition, if the cryptocurrency rises to $ 8,500 – $ 8,600, traders would open short positions at this level, as they are aware of the fact that $ 8,500 was a critical price level for Bitcoin.