After facing some strong selling pressure earlier this week, the Bitcoin price has given a surprising 5% reaching all the way to $42,000. As of press time, BTC is trading 4.26% up at $41,809 with a market cap of $819 billion.

Bitcoin Price Catching Up With Equities

In a recent update from on-chain data provider Santiment, Bitcoin’s price has edged above the $42,000 mark, presenting a notable contrast to the relatively reserved performance of altcoins at present. This occurrence coincides with the recent achievement of a new All-Time High (ATH) in the S&P 500 index, fueling the bullish argument for the cryptocurrency market.

Courtesy: Santiment

The prevailing sentiment suggests that Bitcoin (BTC) and other prominent cryptocurrencies may potentially “regress to the mean,” catching up with the performance of the equities market. Notably, the cryptocurrency sector has exhibited a lag compared to stock markets, a trend that became pronounced starting January 17th when the two markets began diverging in opposite directions.

As the dynamics between crypto and traditional markets continue to unfold, the hypothesis of a potential convergence between Bitcoin and large-cap altcoins with the equities market gains traction, prompting keen observations from market participants.

BTC Can Rally to $43,000

In a recent analysis, prominent crypto analyst Ali Martinez underscores a significant development as the TD Sequential indicator flashes a buy signal on the daily chart for Bitcoin. Concurrently, Bitcoin maintains a favorable position above the 100-day Simple Moving Average (SMA), setting the stage for potential market movements.

Martinez also points to a key scenario where an upward surge past the $40,550 threshold could serve as a catalyst for Bitcoin’s price to reach $43,000. This optimistic outlook is contingent upon the cryptocurrency’s ability to sustain its current position and trigger the anticipated upswing.

Courtesy: Ali Martinez

However, Martinez also issues a cautionary note, emphasizing the importance of monitoring the 100-day SMA support level. A breach of this support level, according to Martinez, has the potential to lead Bitcoin to a downside target of $33,300.

Furthermore, Martinez reports a notable uptick in active Bitcoin addresses, exceeding the 1 million mark. This surge indicates an increasing level of participation and utilization of Bitcoin (BTC).

The post Bitcoin Price Jumps 5% In Catch-Up To Equities, $43,000 In Sight appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am