Crypto analytics firm Santiment says that one indicator could signal the beginning of a positive breakout for Bitcoin (BTC).
As BTC is now trading below the $40,000 level, Santiment points out that gold, on the other hand, is soaring.
At time of writing, gold is up roughly 5% in the last two weeks, which is a considerable amount for the precious metal.
While Bitcoin shows weakness in tandem with a correcting US stock market, Santiment says that if BTC manages to decorrelate from equities, it would be a major sign of a new rally.
“Bitcoin is barely hanging on above $40,000, and this mid-sized drop to end the week coincided with the S&P500 once again dropping. Meanwhile, gold has soared to an eight-month high. Look for a BTC correlation break to be a sign of a positive breakout.”
In a recent update to investors, an executive of digital asset manager Pantera Capital said something similar about crypto decorrelating from traditional markets.
Joey Krug, Pantera’s co-chief investment officer, noted in the company’s Blockchain Letter that…