Bitcoin drops below $57,000 as US stock market sinks

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Bitcoin Noticias

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Bitcoin (BTC) extends its decline by 1.5% on Wednesday, following the rejection from the key resistance level on Tuesday and hurt by a drop in the US stock market.

Bitcoin price approaches a crucial support level at $56,000; a close below it could see its downtrend persist. US spot Bitcoin ETFs registered an outflow of $287.80 million on Tuesday. On-chain data paints a bearish picture as Bitcoin’s long-to-short is below one. Bitcoin’s correlation with the US stock market persists, albeit less pronounced than before. Bitcoin extends its decline by 1.

The Relative Strength Index and the Awesome Oscillator on the daily chart trade below their respective neutral levels of 50 and zero, respectively. Both indicators suggest weak momentum and a continuation of its downward trend. BTC/USDT daily chart However, if Bitcoin’s price breaks above the $59,560 resistance and closes above $62,019, the 61.8% Fibonacci retracement level, the bearish thesis will be invalidated. In this scenario, BTC could extend the positive move by 5.

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