Analyst 'Cautiously Bullish' on Bitcoin but Says Equity Sell-Off Still a Threat

Sep 15, 2020 at 11:24 UTCUpdated Sep 15, 2020 at 13:57 UTC.Bitcoin has crossed into bullish territory, but prices remain vulnerable to a potential sell-off in stocks, an analyst believes.

The leading cryptocurrency jumped above $10,700 on Monday, confirming an upside break of 10-day-long price consolidation.

"We remain cautiously bullish this week."

Bitcoin's decline from $12,000 to $10,000 seen in the first week of September was also accompanied by a 10% drop in U.S. tech stocks.

Joel Kruger, a strategist at LMAX Exchange, believes stocks are going to have a hard time rallying, leaving the door open for a bitcoin price pullback to the $6,000-$8,000 range.

"Bitcoin needs to clear the 2019 high of $13,800 to force me to rethink my bearish bias," Kruger told CoinDesk.

The dollar index, which gauges the greenback's value against major fiat currencies, has come under pressure this week, propelling hard assets like bitcoin and gold higher.

Bitcoin has developed a relatively strong negative correlation with the dollar index this quarter.

The cryptocurrency is currently trading near $10,870 at press time, according to CoinDesk's Bitcoin Price Index.

From a technical analysis standpoint, the immediate bias will remain bullish as long as prices hold above $10,500.