Another sluggish day is ending after a sluggish weekend, during which Bitcoin is slowly and at low volumes creeping downward, consolidating within a local downward trend.
Technically, nothing significant is happening that could give us the prerequisites for updating the forecast.
The only thing worth noting is the price consolidation under the local border of 46,934.61. However, given the downward trend, it is difficult to surprise anyone with the forecast of a decline in BTCUSD to the area of $42,000 per coin now. It is already obvious that "everything is heading towards that." It remains only to be patient and wait for signs of increased volatility and a possible reversal.
Correlation of Bitcoin and the stock market
Bitcoin has been falling in the past few days, as has the stock market. This scenario largely repeats the dynamics of the Dow Jones, S&P 500, and Nasdaq indices, which closed lower on Friday.
Blue-chip stocks among tech companies such as Apple, Google, and Microsoft have also fallen in price over the past few days amid widespread concerns about the new COVID-19 strain and its impact on economic recovery plans.
The cryptocurrency market is maturing
On this occasion, crypto trader and market analyst Lark Davis note that the cryptocurrency market is maturing. It may soon be seen to move with volatility ratios similar to those seen in tech stocks.
The analyst notes that the first phase is associated with high volatility. Over time, the market will notice that it is gradually decreasing against the background of consistent growth. This will be a sign of maturation.
Commenting on the current trend in the prices of major cryptocurrencies, Davis states:
"The crypto market is going to start behaving like tech stocks. Lots of early volatility, then we start to see basically up only (with turbulence) as the user bases continue to grow."
Davis's scenario suggests that Bitcoin will soon be correcting as well, as technology stocks do.
"For reference Amazon hasn't seen any drawdowns over 40% since 2011. Crypto is maturing," Davis tweeted.
