{"id":444868,"date":"2022-05-10T23:11:39","date_gmt":"2022-05-10T20:11:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\/"},"modified":"2022-05-10T23:11:39","modified_gmt":"2022-05-10T20:11:39","slug":"altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\/","title":{"rendered":"# Altcoins stage a relief rally while Bitcoin traders decide whether to buy the dip"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a9a878db05\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a9a878db05\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\/#%E2%80%9D_Altcoins_stage_a_relief_rally_while_Bitcoin_traders_decide_whether_to_buy_the_dip_%E2%80%9C\" >&#8221; Altcoins stage a relief rally while Bitcoin traders decide whether to buy the dip &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\/#Correlation_with_traditional_markets_remains\" >Correlation with traditional markets remains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\/#The_S_P_500_could_drop_much_further\" >The S&amp;P 500 could drop much further<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Altcoins_stage_a_relief_rally_while_Bitcoin_traders_decide_whether_to_buy_the_dip_%E2%80%9C\"><\/span>&#8221; Altcoins stage a relief rally while Bitcoin traders decide whether to buy the dip &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The similarity in price action between the crypto and traditional financial markets remains quite strong on May 10 as traders enjoyed a relief bounce across asset classes following the May 9 rout, which saw Bitcoin (BTC) briefly dip to $29,730.<\/p>\n<p>Market downturns typically translate to heavier losses in altcoins due to a variety of factors, including thinly traded assets and low liquidity, but this also translates into larger bounces once a recovery ensues. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/6929536c-c993-4c02-86d7-5c4c23d5739b.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Daily cryptocurrency market performance. Source: <\/em><em>Coin360<\/em><\/figcaption><\/figure>\n<p>Several projects notched double-digit gains on May 10, including a 15.75% gain for Maker (MKR), the protocol responsible for issuing the DAI (DAI)\u00a0stablecoin, which likely benefited from the fallout from Terra (LUNA) and its TerraUSD (UST) stablecoin. <\/p>\n<p>Other notable gainers include Persistence (XPRT) and its liquid staking token pSTAKE (PSTAKE), which experienced gains of 16.4% and 39.8% after Binance Labs revealed a strategic investment in the liquid staking platform. Polygon\u00a0(MATIC) also bounced back with a\u00a014.59% gain. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Correlation_with_traditional_markets_remains\"><\/span>Correlation with traditional markets remains<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the widely held belief that the crypto market would act as a hedge to TradFi volatility, the correlation between Bitcoin and the stock market has remained high in 2022. <\/p>\n<p>If anything, the volatility usually associated with the cryptocurrency market has begun to rear its ugly head in traditional markets, as evidenced by the price action for the Dow Jones Industrial Average on May 10, which <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2022\/05\/09\/stock-market-futures-open-to-close-news.html\">rose<\/a> more than 500 points only to give back at the time of writing.<\/p>\n<p>The Nasdaq and S&amp;P 500 have fared a little better, notching gains of 0.9% and 1.92%, respectively. <\/p>\n<p>Further evidence to support a correlation between crypto and traditional markets was provided by Bitcoin analyst Willy Woo, who posted the following chart noting that \u201cFundamentals [are] taking a back seat to fear driven trading.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/138d9c02-7681-4594-82ff-b523da841494.jpg\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week chart vs. SPX 1-week chart. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>Willy Woo said, <\/p>\n<blockquote><p>\u201cWhat I do think is we are not trading BTC, we are trading macro and equities. Right pane is SPX support, which will determine BTC directionality, left pane is the equivalent BTC support.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Michael Saylor assuages investors after market slumps hurts $MSTR, $BTC<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_S_P_500_could_drop_much_further\"><\/span>The S&amp;P 500 could drop much further<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While May 10&#8217;s relief rally sent crypto and stock prices higher, market analyst Caleb Franzen <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CalebFranzen\/status\/1524058883311906817\">posted<\/a> the following chart warning about a bearish head and shoulders formation on the S&amp;P 500 chart that could result in the loss of another 500 points. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/b569b4a8-915b-48f7-a5e6-457ed738d8e6.png\"><figcaption style=\"text-align: center;\"><em>SPX\/USD 1-day chart. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>Franzen said, <\/p>\n<blockquote><p>\u201cHard to pick downside targets after my $4,000 call got hit, but I think the MOST LIKELY support zone is down around $3,530\u2013$3,590. This is the white resistance range from September\u2013October 2020.\u201d<\/p><\/blockquote>\n<p>The overall cryptocurrency market cap now stands at $1.444 trillion and Bitcoin\u2019s dominance rate is 41.5%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/altcoins-stage-a-relief-rally-while-bitcoin-traders-decide-whether-to-buy-the-dip\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Altcoins stage a relief rally while Bitcoin traders decide whether to buy the dip &#8220; The similarity in price action between the crypto and traditional financial markets remains quite strong on May 10 as traders enjoyed a relief bounce across asset classes following the May 9 rout, which saw Bitcoin (BTC) briefly dip to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":444869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOGQwZWRlYzktZGVhOC00YWMxLWJkNWItZDhmYTU4YTZlMmZmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74982,74863,75150,73785,70359],"class_list":["post-444868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-market-update","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=444868"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444868\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/444869"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=444868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=444868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=444868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}