Bitcoin (BTC) dropped 6% on Tuesday, reaching levels of support, or the price that an asset does not drop below for a while. The decline caused BTC’s price to fall by about 36% from its $32,000 200-day moving average.
The decline in Bitcoin’s value coincides with a drop in its relative strength index, which has fallen to 41. The RSI indicator gauges how quickly and dramatically prices fluctuate.
The Nasdaq index fell 1.9 percent while the S&P 500 fell 0.7 percent in traditional equities markets. BTC now has correlation values of 0.73 and 0.78 with the S&P 500 and Nasdaq, respectively. Correlation coefficients are a measure of the link between two variables and vary from 0 to 1, with higher values suggesting a stronger association.
Tuesday’s trade saw an 11% decline in the price of ether (ETH). It now has correlation coefficients of 0.70 and 0.71 with the S&P 500 and Nasdaq, respectively.
On Tuesday, altcoins also experienced negative trading, with MATIC from Polygon and LINK from Chainlink falling by 11% and 9%, respectively.
