{"id":134599,"date":"2020-05-26T19:04:36","date_gmt":"2020-05-26T18:04:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=134599"},"modified":"2020-05-27T00:59:40","modified_gmt":"2020-05-26T23:59:40","slug":"heres-what-the-spy-could-mean-for-bitcoin","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/heres-what-the-spy-could-mean-for-bitcoin\/","title":{"rendered":"The S&#038;P 500 just broke a critical resistance; here\u2019s what this could mean for Bitcoin"},"content":{"rendered":"<p>Despite the global economy being virtually frozen, the S&P 500 and all other benchmark stock indices have been able to rally today, smashing through critical technical levels and potentially creating shockwaves that boost Bitcoin.<\/p>\n<p>This rally has allowed the S&P 500 to surmount two key moving averages that were previously suppressing its price action, leading some analysts to believe that it will see further upside in the mid-term.<\/p>\n<p>Because Bitcoin\u2019s striking correlation to this index has persisted in recent times, this could be a positive factor that works in BTC\u2019s favor.<\/p>\n<h2><strong>Stock market rallies higher as S&P 500 breaks 200-day moving average<\/strong><\/h2>\n<p>At the time of writing, the S&P 500 is trading up just under 2 percent at its current price of 3,010. This is the highest price level that the stock index has traded at since early March.<\/p>\n<p>It also marks a massive rebound from its yearly lows of 2,230 that were set at the bottom of the market-wide decline in late-March.<\/p>\n<p>Its massive climb from these lows has allowed it to rapidly approach its year-to-date highs of 3,380.<\/p>\n<p>This recovery has come about despite there being little fundamental change to the global economy, as most countries still remain on lockdown as there has been little meaningful progress towards a vaccine to curb the ongoing pandemic.<\/p>\n<p>Today\u2019s upswing has allowed the S&P 500 to surmount its 100-day and 200-day moving averages, which had both previously been strong resistance levels.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/people\/josh-rager\/\">Josh Rager<\/a> \u2013 a respected analyst \u2013 spoke about this breakout, <a href=\"https:\/\/twitter.com\/Josh_Rager\/status\/1265281521650458624\">saying<\/a>:<\/p>\n<blockquote><p>\u201cStock market bears in disbelief! As SPX opens up above both the 100DMA and 200DMA.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_134600\" aria-describedby=\"caption-attachment-134600\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-134600 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX-1024x484.jpg\" alt=\"S&P 500 Bitcoin\" width=\"1024\" height=\"484\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX-1024x484.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX-300x142.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX-768x363.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX-1536x725.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/SPX.jpg 1817w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-134600\" class=\"wp-caption-text\">Image Courtesy of Josh Rager<\/figcaption><\/figure>\n<h2><strong>Here\u2019s what this could mean for Bitcoin<\/strong><\/h2>\n<p>Many investors have been noting that <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin\u2019s<\/a> swift rebound from its mid-March lows of $3,800 has confirmed its status as a \u201csafe haven\u201d asset.<\/p>\n<p>Despite this, it is important to note that this recovery has come about in tandem with that seen by the S&P 500 and the aggregated equities market.<\/p>\n<p>The below chart from the analytics platform <a href=\"https:\/\/cryptoslate.com\/companies\/skew\/\">Skew<\/a> shows that the two assets have continued seeing a striking correlation \u2013 with Bitcoin\u2019s recovery simply being more magnified than that of the stock market.<\/p>\n<figure id=\"attachment_134601\" aria-describedby=\"caption-attachment-134601\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-134601 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/skew_bitcoin_vs_sp500-2-1024x572.png\" alt=\"Bitcoin vs S&P500\" width=\"1024\" height=\"572\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/skew_bitcoin_vs_sp500-2-1024x572.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/skew_bitcoin_vs_sp500-2-300x168.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/skew_bitcoin_vs_sp500-2-768x429.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/skew_bitcoin_vs_sp500-2.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-134601\" class=\"wp-caption-text\">Data via Skew<\/figcaption><\/figure>\n<p>Skew data also shows that the two assets\u2019 realized correlation has grown heightened over the past week.<\/p>\n<p>If the S&P 500\u2019s break above its 200-day moving average sparks a short-term uptrend, this could bolster where Bitcoin heads next.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite the global economy being virtually frozen, the S&#038;P 500 and all other benchmark stock indices have been able to rally today, smashing through critical technical levels and potentially creating shockwaves that boost Bitcoin. This rally has allowed the S&#038;P 500 to surmount two key moving averages that were previously suppressing its price action, leading [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":134611,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60786],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The S&amp;P 500 just broke a critical resistance; here\u2019s what this could mean for Bitcoin<\/title>\n<meta name=\"description\" content=\"The S&amp;P 500 has surmounted two key moving averages that were previously suppressing its price action, with this potentially boosting Bitcoin as well.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/heres-what-the-spy-could-mean-for-bitcoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The S&amp;P 500 just broke a critical resistance; here\u2019s what this could mean for Bitcoin\" \/>\n<meta property=\"og:description\" content=\"The S&amp;P 500 has surmounted two key moving averages that were previously suppressing its price action, with this potentially boosting Bitcoin as well.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/heres-what-the-spy-could-mean-for-bitcoin\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-26T18:04:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-26T23:59:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/wallstreet.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/heres-what-the-spy-could-mean-for-bitcoin\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/heres-what-the-spy-could-mean-for-bitcoin\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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