Crypto News

This Eerie Shanghai Composite Fractal Predicts Bitcoin Will Surge Past $10k

Bitcoin was once branded as an asset that was uncorrelated from the rest of the financial markets.

Look no further than a survey of institutional investors by Fidelity Investments. It found that a good portion of this group want to buy cryptocurrencies because they are a valuable portfolio diversifier that is uncorrelated.

Yet this has seemingly changed over the past two months.

BTC, as many have heard, is seemingly trading in line with global stock markets at this point. JP Morgan, the Wall Street banking giant, commented the following on June 11th:

“Cryptocurrencies have traded more like risky assets like equities—a significant change relative to the prior couple of years.”

Some see this as a bearish blow for Bitcoin, but a fractal analysis suggests that it may be bullish for the market.

Related Reading: 84% of Crypto Twitter Is Buying or Holding BTC , Boosting Bull Case

The Ongoing Boom In Chinese Stocks Could Send Bitcoin Flying

Due to positive economic indicators and easy monetary policy, the Chinese stock market is booming. There was a day last week where the Shanghai Composite index gained around 6% in a single day.

According to trader Rolando Santos, this breakout could have a positive effect on the Bitcoin market. He shared the chart below on July 10th, showing that the macro charts of the Shanghai Composite and BTC are directionally identical.

This fractal analysis predicts that if Bitcoin follows Chinese stocks, it will soon surge past $10,000, potentially kick-starting a bull market.

Image

BTC vs. Shanghai Composite index analysis by Rolando Santos (@TKPTrader on Twitter). Chart from TradingView.com

The strength in Chinese stocks corresponding with a rally in the price of Bitcoin logically makes sense, analysts have said. Amber Group, a cryptocurrency finance company, commented earlier this week on the logic:

“FTSE China A50 Index at new ATHs, surpassing 2015 mania levels. As a proxy for risk sentiment in China, this could bode well for crypto.”

The former head of product at Messari, Qiao Wang, echoed the thoughts. He wrote on Twitter that the ongoing strength in the stock market may “spill over to crypto,” especially to decentralized finance.

“This is a major development. China just shilled its stock market in front of 1.4B people on national television. The risk-on sentiment might spill over to crypto. I’m reducing my s**coin shorts and adding Defi longs.” 

The Gold Fractal Is There Too

Another correlation that has formed is one between gold and Bitcoin. Both assets have seen extremely strong years in the grand scheme of things, both gaining around 20% as of this article’s writing.

Over the past few weeks, though, BTC has fallen behind structurally. As gold has seen a breakout to eight-year highs, Bitcoin has been trapped in a 15% range as it attempts to set a direction.

Bitcoin vs. gold

Bitcoin and gold fractal analysis by trader “Ethereum Jack” (@BTC_JackSparrow on Twitter). Chart from TradingView.com

The above fractal analysis indicates that Bitcoin will soon rally past $10,000 if it follows the path trailed by gold.

Related Reading: Crypto Tidbits: TikTok’s Dogecoin Craze, Coinbase on Stock Markets, BTC Holds $9k
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com 
This Eerie Shanghai Composite Fractal Predicts BTC Will Surge Past $10k

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

0 Comments
Inline Feedbacks
View all comments

Related Crypto News

TNABC Miami’s Eighth Annual Conference Goes Virtual, Event Underscores Technology’s Important Role
On January 28-29, 2021, The North American Bitcoin Conference (TNABC) is preparing to kick off its eighth exhibition with...
China turns up pace on CBDC release, tests infrastructure prior to adoption
The yuan is not seen as a major currency. Could digitizing it change that? China is breaking new ground...
French Programmer Sent Bitcoin Donations to Far-Right Activists Who Participated in the US Capitol Riots
A crypto forensic analysis reveals that a French donor sent over $500,000 worth of bitcoin (BTC) to far-right activists...
Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop
Bitcoin faced a strong drop into Friday. The cryptocurrency, after peaking at $40,000, fell as low as $34,000 in...
Venezuelan President Maduro Promises 2021 Will Be the Year to Boost Usage of Petro
The Venezuelan president, Nicolás Maduro, has claimed that 2021 will be the year of the state-backed petro (PTR) token....
$100 Swaps: Ethereum Dex Volumes Saw $39 Billion Last Month Despite ‘Insane’ Trading Fees
During the last 12 months, Ethereum-based decentralized finance (defi) solutions and decentralized exchange (dex) platforms have been very popular....

Featured Crypto News

Canada’s first public Bitcoin fund hits $1 billion
3iQ’s Bitcoin QBTC fund has surged 900% in market cap since October 2020, breaking a $1 billion milestone. Canadian...
US Fed: CBDC a ‘very high priority’ to combat bad private sector money
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin...
Coinbase Issues a Public Apology to EU and UK Customers — Did Not Address Its Global Issues
Cryptocurrency exchange Coinbase published a statement addressing their U.K. and E.U. customers, apologizing for system outages and account restrictions....
Anchorage Obtains Federal License to Operate as Crypto Bank From the OCC
The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to...
Respect the Pomp: RSK’s token spikes 30% after founder appears on podcast
RIF got a nice price boost hours after its founder appeared on Pomp’s podcast. RIF, the utility token for...
Bitcoin Reclaims $40,000 Just days after Falling to $30,000
After a sharp correction that lowered its price to nearly $30,000, Bitcoin is close to reclaiming $40,000. The leading...