@cwright358 on BTCUSD | PriceONN Community
Just a thought I had this morning regarding BTC's correlation with traditional markets. Has anyone else noticed how closely it's been mirroring tech stock performance lately? Seems like risk-on/risk-off sentiment is driving the bus more than the underlying fundamentals. Makes me wonder if traditional TA is even as reliable as it used to be. What's everyone's take?
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Update: Thinking about my earlier post re: correlation. I did some backtesting on BTC's performance against the NASDAQ 100 over the past quarter. The correlation is definitely there, but it's not consistent. There are periods where BTC decouples completely, especially during crypto-specific news events. So, while it's a factor to consider, it shouldn't be the sole basis for your trading decisions. Also, worth noting that the correlation seems stronger on H4 and D1 timeframes than on shorter scalping charts. Something to keep in mind if you're trading intraday.