The halving of the Bitcoin is behind us, and its price is just soaring. Besides, BTC is surging as legacy markets continue their downturn, reinforcing the narrative that the cryptocurrency continues to decouple.
Bitcoin Price Soars 9% in Less Than Three Days
The halving of Bitcoin occurred a little over 48 hours ago. BTC was trading at around $8,550 at the time. It is currently changing hands at over $9,300, while the latest daily peak has reached $9400 on Bitstamp. This represents an improvement in less than three days of more than 9 percent.
From a technical perspective, Bitcoin broke above the range between $9,130 – $9,200. This comprises 61.8 percent of the Golden Fib point and represents a strong area of resistance. This is now the first major support coming from below, followed by $8900.
The next area to look out for lies between $9,400 and $9,500, the latest daily high as of writing these pages, should BTC be able to make a definite close above it. Strong resistance, though, lies between $9,800 and $10,000. The latter is the week-old high and the highest point since mid-February.
It is worth remembering that, as it stands, Bitcoin defies many of the doom-and-gloom forecasts that have been factored in the selling of debt from miners that are no longer profitable.
BTC Continues To Decoupe From Legacy Markets
Another interesting thing to remember is that the cryptocurrency keeps detaching itself from conventional markets. The S&P 500 lost about 5% of its value in the same period. While gold was more or less at the same price at the time of halving.
This isn’t a two-day phenomenon as seen in the chart above. As of the beginning of May, the price of Bitcoin has struggled to match that of traditional markets.
Most analysts have previously claimed that Bitcoin wants to be in its own league. The only way to do so is to disconnect entirely from conventional finance. This would allow it to establish itself as a viable alternative and to fulfill the purpose for which it was established.
In any case, the latest increase in Bitcoin’s price will possibly be viewed as very optimistic. The financial crisis caused by coronavirus continues to take its toll, while some countries have removed some of the restrictions to normalize their economies. Nevertheless, big indices are still far from recovery as from mid-February, the S&P 500 is, for once, around 15% below its levels.