Glaring Downside Risks Make Bitcoin Correction Likely Despite “Buy the Dip” Sentiment

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Bitcoin crawled back above $7,000 this Thursday trade but failed to confirm a bullish breakout. The cryptocurrency rebounded as US Stocks and Oil broke their two-day losing streak. Analysts are concerned that the markets are overly optimistic. Bitcoin jumped back above the key support/resistance level of $7,000 on “buying the dip” sentiment Thursday but failed to turn the rebound into a full-fledged bullish breakout. The benchmark cryptocurrency surged 4.95 percent to 7,191.99 after dropping by more than $500 at the start of this week. The move uphill came in sync with a similar upside recovery in the US stocks and oil market. The Dow Jones Industrial Average gained 2 percent 23475.82 while Brent crude finished 5.4 percent higher at $20.37 a barrel. The parallel moves once again proved a growing positive correlation between Bitcoin and traditional equities. The otherwise different assets fell together owing to the economic crisis caused by…

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