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24 September 2022
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Bitcoin

Bitcoin Market Update: BTC/USD to fall in tandem with S&P500

  • Bitcoin may experience a short-term sell-off.
  • The strong long-term support is created by $8,000.

Bitcoin may fall victim to the crash on the stock markets, according to an independent trader Alessio Rastani, who was buying S&P 500 and the UK FTSE 100 when the stocks crashed on March.

Now he is looking to pull out of the US stock market as it moves towards a risky zone. Notably  speaking in the interview with INTERNET DO  Rastani pointed to a positive correlation between BTC and the US stock market. 

He sticks to a bullish bitcoin forecast in the long run. However, if  a bearish stock market scenario plays out, bitcoin could also take a temporary nosedive

 If the positive correlation between bitcoin and the S&P 500 continues, which is likely, then bitcoin could also see a retracement or correction at the same time when the S&P starts its corrective drop. But this correlation remains to be confirmed by price action, he said.

BTC/USD may take out the resistance of $10,000, and once this happens, we will see a fast growth towards $11,000 and $12,000, he added.

BTC/USD: Technical picture

Meanwhile, at the time of writing, BTC/USD is changing hands at $9,700, mostly unchanged since this time on Tuesday and down 1% since the beginning of the day. The first digital coin has been locked in a tight range after a failed attempt to settle above $10,000 at the beginning of the previous week.

On the weekly charts, the price has created two Doji candles, which can be interpreted as a signal of market uncertainty. On a daiyl chart, BTC/USD moved outside the triangle pattern. Now the price is moving along the upper line of the triangle now at $9,600 amid lack of upside momentum. If the coin return inside the pattern, the downside momentum may gain traction and take the price to $9,000. THis psychological barrier is reinforced by daily SMA50, and it separates us from a deeper decline towards $8,000 with daily SMA100 and SMA200 clustered around this barrier.

BTC/USD daily chart

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