Bitcoin bulls are celebrating the asset's recent surge, but BitMEX co-founder and prominent crypto essayist Arthur Hayes is urging the market not to get overly excited.
Hayes has warned investors that the digital asset is still moving in lockstep with traditional tech equities.
"BTC (white) hasn't decoupled yet from US SaaS tech companies (green). It could be a dead cat bounce. We aren't in the clear yet. Be patient," Hayes cautioned his followers on X .
The SaaS tech correlation
Historically, Bitcoin enthusiasts have championed the cryptocurrency as "digital gold".
However, when you overlay Bitcoin's trajectory with a major SaaS index or ETF, the charts often move in tandem.
If tech stocks decline due to macroeconomic factors, Bitcoin routinely follows them down.
Hence, until Bitcoin proves it can rally independently of a broader tech stock pump, the market is not truly out of the woods.
If the current tech rally stalls or reverses, a highly correlated Bitcoin will likely get dragged down with it.
On March 4, Bitcoin experienced an impressive relief rally. The asset surged throughout the trading session, eventually tapping an impressive intraday high of $73,952.99.
However, the cryptocurrency rallied in tandem with software stocks. Until Bitcoin breaks its tether to the traditional tech sector, Hayes advises keeping celebrations to a minimum.
A significant move
In the meantime, Brandt believes that the recent bounce represents a potentially significant change of price behavior for Bitcoin.
Bitcoin was consolidating inside a clearly defined symmetrical triangle or pennant pattern.
The final, massive daily candle completely shatters the upper descending trendline of that triangle, with the price reaching the $73,000 level.
Dan Burgin
Vladislav Sopov
