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Bitcoin Could Top As Stocks Enter a Pivotal Technical Territory
Bitcoin could reverse if the stock market tops at current levels, a cryptocurrency trader recently noted.
He shared the chart below on September 14th, which shows that after a recovery after last week’s lows, the S&P 500 is rubbing up against a pivotal resistance. If the resistance holds, that means that the S&P 500 may be in a short-term bear trend, which would not bode well for Bitcoin and other risk-on markets.
The trader, who is the head of technical analysis at crypto research firm Blockfyre, commented on the matter:
“Here we are. If Stonks are bearish this is where the rally ends. Election in 2 months. Risk off is a real potential outcome. Have you managed your risk accordingly?”
Chart of the price action of the S&P 500 ever since the start of the pandemic with analysis by crypto trader Pentoshi (@Pentosh1 on Twitter). Chart from TradingView.com
The same analyst shared a chart that also shows that Bitcoin is at a pivotal resistance zone, even after the ongoing rally.
For the cryptocurrency to confirm that it is on bullish footing, it will need to push above the current region and retake the $11,000 support.
Traders Are Leaning Bullish Here
Some traders are maintaining their bullish sentiment despite some uncertainty about price action.
Referring to the chart below, crypto trader and Blockroots founder Josh Rager commented that Bitcoin closing above $10,000 on a weekly time frame suggests a bullish bias can be held:
“$BTC Weekly Close. Bitcoin closed above the $9940 to $10,173 level and held for the second week in a row. I want to see Bitcoin reclaim $11,900 and close above to be bullish. Until then, I remain neutral (leaning bullish) and will continue to trade altcoins at this time.”
Chart of BTC's price action over the past one and a half years ith analysis by crypto trader and Blockroots co-founder Josh Rager (@Josh_Rager on Twitter). Chart from TradingView.com
There are also fundamental factors that are set to drive BTC higher, including ongoing monetary stimulus and fiscal stimulus.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Technical Analyst Fears Stocks May Top Here — and That's Bad for Bitcoin