Are Bitcoin and Stocks Correlated?
Bitcoin rate confirms the correlation with the S index&P 500
Eve S&P 500 fell more than 5.5% but found support above the 200-DMA.
S&P 500 and Bitcoin have been correlated since at least early March.
June 11 S index&The P 500 plunged 5.8%, the largest drop since mid-March. Against this backdrop, market observers have suggested that this is the start of a longer-term downtrend..
Thursday S&P 500 dipped noticeably, declining from a high of 3190 to a low of 2998.
In fact, the downtrend began on June 9, but two days later, the bearish momentum intensified sharply. At the same time, the quotes met support above the 200-day moving average, while the daily RSI bounced off the 50 level. Thus, two bullish signals were formed.
In addition, the 50-day moving average is moving northward, possibly foreshadowing a bullish crossover with the 200-day moving average. The vector of the future trend will depend on the implementation of this intersection..
However, since the index was unable to challenge the February highs, it can be assumed that the rise that preceded the collapse was just a correction, especially since the maximum noted on June 9 was recorded just at the 0.854 Fibonacci retracement level.
Renowned trader @Bobloukas shares this view, believing the recent rally was a pullback. Moreover, the trader is confident that the peak has already formed, and now the index is waiting for a long-term bearish correction..
At the same time, he does not exclude a short-term rebound after yesterday’s collapse:
Historically speaking, now is not a very good time for too bearish predictions..
First you need to wait for a rebound and then make trading decisions.
Not sure if it’s time to bet on S index recovery&P 500? Not sure about the accuracy of the correlation of the index with the bitcoin rate? Join the discussion in our Telegram channel– and you will find out everything!
Correlation with bitcoin
At least since the March collapse, the dynamics of S&P 500 correlates quite closely with the bitcoin rate.
In early May, there were some discrepancies in the behavior of the two assets.
Then the main digital currency strengthened, and S&The P 500 fell. But then BTC and the index merged again, confirming that despite short-term deviations, overall, the two assets continue to correlate with each other..
After yesterday’s collapse to $ 9,000, bitcoin is trying to recover, but buyers are in no hurry to return to the market and are cautious. The intraday high at the time of this writing is around $ 9,500 – a breakout of this level is necessary for an upward correction to develop.
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