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How Bitcoin and the S & amp; P 500 correlate with each other

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The Correlation of Bitcoin and the S&P 500

How Bitcoin and the S & amp; P 500 correlate with each other

Like Bitcoin and the S Index&P 500 correlate with each other
CONTENT

  • SPX index updated its annual high in September.

  • Technical indicators are mixed.

  • SPX and Bitcoin Rates Show Positive Correlation.

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S&The P 500 has recouped any losses it suffered during the panic in early March and is now updating its highs for the year. Bitcoin has been copying the dynamics of the index since March.

New highs of the year

Stock Index S&The P 500 (SPX) hit a high of $ 3,398 on Feb.20, but this was followed by a sharp drop. As a result, on March 23, the index was at a minimum of $ 2178, having lost a little 36% of its value over the month. However, since then he has grown again..

On September 2, the SPX index peaked at $ 3,588, absorbing the previous February peak. Subsequently, the index rolled back silently and tested the strength of the $ 3300 area as support. A long bottom wick appeared on the chart, after which SPX began to rise.

How Bitcoin and the S & amp; P 500 correlate with each other

Technical indicators on the daily chart are giving conflicting signals. RSI is rising and trading above 50, but showing strong signs of bearish divergence.

Stochastic Oscillator formed a bullish crossover, but after that it began to give strong bearish divergence signals.

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SPX chart. Source: TradingView

Cryptocurrency trader @TradingSurfers shared an SXP chart on Twitter, saying he expects the index to rise until 2021.

Source: Twitter

Technical indicators on the daily chart support upside potential. MACD moved into the green zone, and the Stochastic Oscillator formed a bullish crossover. When this happened the previous time, the market began to rally (blue arrow on the chart).

In addition, the RSI is holding above the 50 mark, suggesting the trend is bullish..

SPX chart. Source: TradingView

Correlation with bitcoin

Earlier, we have repeatedly discussed the principles and degree of correlation between the bitcoin (BTC) rate (represented in the chart by the orange line) and the dynamics of the SPX index (represented by candles on the chart). In particular, we assumed that this correlation tends to increase markedly during periods of rapid market movements..

In general, this year we can talk about a positive correlation between these two assets at least since the fall in March. This means that the growth of one asset can cause the growth of another. Except for two periods that lasted almost a month (in May and August), the dynamics of Bitcoin and SPX almost mirrored each other..

How Bitcoin and the S & amp; P 500 correlate with each other

SPX chart. Source: TradingView

Since the beginning of October, this correlation has strengthened even more, and the growth rates of both assets began to practically coincide..

Thus, a decrease in SPX may lead to a decrease in the bitcoin rate, and vice versa..

SPX chart. Source: TradingView

You can read the latest Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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