Bitcoin dives on Wall Street open, DOGE price jumps on Elon Musk’s Twitter offer

Bitcoin (BTC), which took a large chunk of its impulse move above $41,000, opened Wall Street with a whimper on April 14.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Bitcoin follows stocks downhill

Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s rapid losses since trading began on April 14.

The pair was close to $41,600 the previous day, but momentum ran out overnight and the largest cryptocurrency needed minutes to drop almost $1,000 at the opening bell.

As support, $40,000 was still available at the time of writing. However, bulls had also failed to recover the lost ground.

The disappointing start to U.S. equities, and Bitcoin’s implied correlation, led traders to once again favor a new downside.

#Bitcoin Although this won’t be a popular opinion, I believe something similar is very likely. I wouldn’t be surprised if it does, but my gut tells me to watch it closely.
— Nebraskangooner (@Nebraskangooner) April 14, 2022

At the time of writing, the S&P 500 (SPX), was down 0.3%

Popular Twitter account CRYPTOBIRB stated that the correlation coefficient between BTC and SPX was very high at 0.9 over a seven-week period.

It shows that Bitcoin trades like large-cap equities on an average and that the inter-market connection between them is evident. Inversion could be possible as the correlation fluctuates.

The short-term performance of the price was not impressive, but traders remained vigilant in case there was a deeper retracement. Anbessa believes that only a sustained retention of $41,300 will change the immediate outlook.

Hopium: Potential early parabola. Inverse H&S neckline highlighted in green. I don’t think this scenario is happening at the moment. Ready to be stopped out by a bear flag breakout. The short-term outlook could be changed by a relcaim of Kijun Sen $41,3k Still LONG above bear flag support.
— ANBTCESSA (@Anbessa100) April 14, 2022

Dogecoin sees reliable bull forces return

Altcoins also suffered from Bitcoin’s sudden turn, with Dogecoin (DOGE), the only one to continue the trend.

Related: BTC stock correlation ‘not the we want’ — 5 things you should know about Bitcoin this week

This was due to the classic knock-on effect of Elon Musk, Tesla CEO and DOGE advocate, making noises.

Musk asked to purchase the company or “reconsider” his 9.2% stake in Twitter. This was the latest chapter in the tale of the billionaire’s involvement in Twitter.

DOGE/USD rose on the news but lost 2% each day after a subsequent decline.

Chart of 1-hour candle charts for DOGE/USD (Binance). Source: TradingViewcom. You should do your research before making any investment or trading decision.

Lillian Call

I am a technology and gaming writer by profession. I love NFT's and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.