Bitcoin and Ethereum both continue to trade below their respective support levels as cryptocurrencies remain "lost for a direction".
The largest coin in the market inched slightly higher, gaining 1.09% to US$29,619, just under its key support level of US$30,000.
Ethereum on the other hand fell slightly, losing 0.49% to US$1,975, but still changing hands below the key level of US$2,000.
According to Naeem Aslam, a market analyst at Avatrade, “Bitcoin’s correlation has become stronger with the equity markets, and the correlation has become weaker with the gold price”.
Cryptocurrencies have increasingly mirrored the movement of equity markets, in particular tech indices such as the Nasdaq in the US and the Hang Seng in Hong Kong.
Aslam added that "as long as the equity indices continue to move higher, we may see Bitcoin prices moving in a positive direction”.
The Hang Seng is currently up 0.29% to 20,169 points, while the Nasdaq was down 2.35% to 11,264 points.
“We have seen decent upswings for the stock indices, which confirmed a positive correlation for the Bitcoin price.”
“However, if the risk-off trade comes back, as plenty of unknown factors linger around, we could see the Bitcoin price breaking to the downside.”
Aslam said today’s release of the minutes from the most recent meeting of the Federal Open Market Committee, which makes key decisions on US interest rates, “could potentially move the Bitcoin price”.
In some of the altcoins, Solana was down 1.99% to US$48.93, Polkadot gained 0.15% to US$9.99 while Avalanche fell 2.95% to US$28.57.