Bitcoin price climbed to $65,000 after sweeping liquidity at $54,000 last week held down by selling pressure from the German government, which greatly impacted market sentiment. Massive liquidations rocked the crypto market while retail traders faced capitulation.
The swing above $60,000 and subsequently to $65,000 has seen a strong bullish wave waking up altcoins. Ethereum regained strength to $3,500, Solana topped $160 while Binance Coin made a bid for $600.
According to CoinMarketCap data, the total crypto market cap surged along with the prices to $2.4 trillion. Sentiment improved in the process with the fear and greed climbing to 58.
Crypto proxy stocks including the largest institutional holder of BTC MicroStrategy Incorporated (MSTR) and Coinbase (COIN) recorded a spike in their respective values.
Assessing Crypto Proxy Stocks In The Wake Of Bitcoin Price Rally
Crypto stocks are positively correlated with Bitcoin price. Prices of MSTR and COIN shares rally in tandem with BTC and the crypto market and also tend to closely follow the corrections. However, since stocks are relatively less volatile than digital assets, there’s a tendency to hold their values compared to the former.
Yahoo Finance reveals from May MicroStrategy grew to achieve a peak of $1,736 from $1,015. This majestic move was succeeded by a noticeable correction to $1,202 reflecting Bitcoin price dive from $70,000 to $54,000 in June and July.
The newly activated trend reversal in Bitcoin over the weekend and this week was mirrored by MSTR share’s rise to $1,668 on Tuesday. MicroStrategy now trades at $1,594, reflecting a 4.2% dip on the day.
A similar trend can be seen with Coinbase (COIN) shares which exchanged at $246 on Wednesday during US business hours. The stock recently climbed to $250 after falling to $207.
Should Bitcoin sustain a rally above $70,000 in July, MSTR and COIN shares are likely to maintain their respective uptrends. Therefore, investors considering these stocks would be in a better position if they watched out for BTC movements to avoid being caught unawares.
Bitcoin Price Rally Cools Off
A correction is gaining momentum after Bitcoin reached highs above $65,000. The pullback might allow for fresh accumulation before BTC eases into the final path to $70,000 later in the week.
Meanwhile, support is anticipated at $64,000 and likely backed by a buy signal from the Moving Average Convergence Divergence (MACD) indicator.
Should investors take profits due to resistance at $65,000, Bitcoin price prediction points to a longer dive to the 50-day Exponential Moving Average (EMA) at $62,565. If push comes to shove, Bitcoin might seek liquidity at $60,000 ahead of a larger breakout.
The post Bitcoin Price Soars 12% But Are Crypto Stocks Rising? appeared first on CoinGape.
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