According to Tone Vays, a derivative trader and analyst, the Bitcoin price range will stay between $6,000 and $10,000 until 2021.
Contrary to popular notion, Vays predicts that Bitcoin will remain under $10,000 for the rest of the year. His prediction is based on speculations that Bitcoin is 95% correlated with the S&P 500. He warns that the S&P 500 will come crashing soon should there be a daily close under 3,000 points. He made the revelation in his latest YouTube Series episode, Trading Bitcoin.
In the early hours of June 25, BTC dropped by almost $300 within an hour. As at press time, it is currently trading in the low $9200 range.
Vays believes the impending S&P 500 crash will be as a result of a steady increase in unemployment as well as new confirmed cases of the coronavirus. A Bloomberg report shows the disturbing forecast.
According to the analyst, BTC would end up around $7,000 if its Relative Strength Index (RSI) falls to about 30.
Although Bitcoin and the stock market – especially the S&P 500 index – are completely independent entities, investors often transfer sentiments between the two. On May 14, BTC rose by up to 11% as the stock market recovered from a bearish movement on the same day.
Back in March, after Bitcoin plunged to $3,700, Vays said that the figure was the lowest point Bitcoin would ever go.
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