(Kitco News) – The recent correlation seen between stock prices and the crypto market diverged on Wednesday as cryptocurrencies fell under pressure while the major stock market indices broke higher, helping to lift the sentiment on Wall Street.
As a result of the positive day for stocks, the S&P, Dow and Nasdaq all closed the day well into the green, up 1.49%, 1.60%, and 1.54%, respectively.
Meanwhile, Bitcoin (BTC) continued with more of the same sideways price action that it has displayed since early November when the FTX drama began. Data from TradingView shows that the top crypto limped lower throughout the trading day on Wednesday, sliding from a high of $16,919 to a low of $16,730 and trading at a price of $16,770 at the time of writing.
BTC/USD 4-hour chart. Source: TradingView
A similar price action observation was made by Kitco senior technical analyst Jim Wyckoff, who noted that “trading has been sideways and choppy this week” in his morning Bitcoin update.
As a result of the flat market, “Neither the bulls nor the bears have any near-term technical advantage, which suggests more of the same, sideways trading action into the end of the year—barring any major fundamental shock to the marketplace,” Wyckoff said.
Bitcoin downtrend on the 4-hour chart
Additional analysis was provided in the most recent Trade Letter from Eight Global, which highlighted that Bitcoin is now in a downtrend on the 4-hour chart following a sweep of the high of $18,200 on Dec. 14.
The analysts noted that as it stands now, “the market shows us that we are in a discounted area within the price range between the high and low after the structure break on the 4-hour.”
BTC/USD 4-hour chart. Source: Eight Global
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