Could Bitcoin Copy S&P 500 and Break New Highs?
As analysts from crypto and traditional markets continue to find logic and rationale in the seemingly illogical pattern of the Bitcoin market, one trend continues to receive intense argument — the stock markets. The S&P 500 in particular, now in its new all time highs, has been touted as a reliable factor in predicting Bitcoin price.
Especially in the last two years, as the lines blur between traditional stock market players and crypto speculators, analysts seek to prove if the performance of the stock market could place some influence on Bitcoin price action. And with the S&P 500 gaining new heights in the last year or so, and a certain digital asset called Bitcoin also pushing for new highs in 2019, could there be more than a correlation?
Today, crypto technical analyst Alessio Rastani certainly thinks so. He shows how the index will pull back slightly below 2,950 before galloping onwards and above 3,000. According to Rastani, however, the stock index must first remain within and above the 2950 – 2930 support.
He notes how during successive all-time high rallies, Bitcoin price has done exactly the same in the past few weeks, all the while maintaining action above the 21 daily moving average (DMA). In the past five months alone, the Bitcoin price has bounced off this DMA seven times.
If Rastani were accurate in his prediction, this could be a strong indicator and a huge sign of comfort for long traders, who will want to stay in current positions to wait for new all-time highs, while short term speculators might want to watch out for the moment Bitcoin falls below this 21 DMA line and short Bitcoin.
$BTC Update
Bitcoin had an okay day, red candle but primarily neutral with a strong candle after daily close
Minor horizontal resistance is overhead that price has cut through multiple times the last two weeks
Target is still higher highs close above $11,967 is bullish pic.twitter.com/dcRirLRFuW
— Josh Rager
(@Josh_Rager) July 6, 2019
Josh Rager, another popular analyst, also supports this theory, saying that even with falls, the worst sentiment derived is a “primarily neutral” one.
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