Despite the epidemic, geopolitical turmoil and more, Bitcoin and S&P fled secondary declines after the liquidity collapse of March 500.
At least for now, BTC is over $ 9,000 and its leading stock index is over 3,000 points. Both measures have been maintaining their respective levels for more than a month.
While S&P 500 remains strong, Bitcoin is also preparing to be collected.
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S&P 500 Secures 3,000 to Boost Bitcoin Bull Box
In early June, the S&P 500 strongly rejected what many saw as the key level: 3,200. This level has been stated by many analysts as a level of importance in social and media and some mainstream media organizations.
Still, an analyst says that the withdrawal of the American stock market is still on the rise.
With reference to the table below, Wrote:
“This definitely surprises me. There is no big retreat and we have taken back our great resistance. This bull is imo, not much to say. We can (now) retreat to the depths of our great support, but I think that this level will continue and we will see new ATH soon. "
S&P 500 analysis by Bitcoin trader "Credible" (@CredibleCrypto/Crediblestocks on Twitter). Chart from TradingView.com
The analyst's thinking relies heavily on the 3000 psychological and technical levels remaining intact.
Bitcoin will benefit if the S&P 500 rises due to the correlation between these markets.
JP Morgan strategists observed Since March, "Cryptocurrencies were more like risky assets like equity – a significant change over the previous few years."
Arthur Hayes, general manager of BitMEX, at least observed a negative correlation. In April he wrote:
“Bitcoin will be unclaimed. Can the price retest $ 3000? Absolutely. While SPX is knocked over and the tests are expected to be 2,000, all asset classes will vomit again. "
Not everyone is convinced
Although this feeling, not everyone is convinced that the S&P 500 – and the extension of Bitcoin – is on a solid basis.
Recently, investment officer at Minneapolis-based Leuthold Group He told Bloomberg: On a 20% decline potential:
“The bulls could have been proved by keeping the low of March 23, but here you can lose a lot of money at a disadvantage… You can still have a 20% drop from our summit on June 8. It is very easily. "
This is a recurring feeling by Scott Minerd, Guggenheim Investments' global CIO. In an interview, Minerd said that while the charts have technical warning signs, the S&P 500, whose stocks were overvalued, could fall to 1,600.
While the S&P 500 and Bitcoin correlation remains strong, any collapse in the stock market can start another BTC bear trend. However, assuming the Federal Reserve's “unlimited” monetary expansion commitment continues, a decline can be reversed quickly.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt, spx Charts from TradingView.com As S&P 500 Flips 3,000 Into Support, Bitcoin Could Benefit: Analyst