In recent weeks, both Bitcoin and the stock market have been under pressure, with a major drop in prices. Macroeconomic uncertainty, interest rate expectations, and risk aversion create volatility in financial assets. However, this may end.
According to trader and technical analyst Willie Woo The most important graphics for Bitcoin at the moment are not his own, but the future graphics of the S&P 500 (SPX). And what’s important is that from his vision he seems “pretty good” now.
because? The performance of SPX Futures, an index that collects the main 500 US actions, is approaching the upward trend floor that has been maintained over the past two years. Technical analysis suggests that this could be in a viable area for price rebounds.
Meanwhile, the relative Strength Index (RSI), a technical indicator used to measure assets oversales, reflects the difference in bearish movements as they reach an overall level. This metric shows it The S&P 500 has historically dropped to a level ahead of price rebounds.
In other words, as the following graph shows, this combination of factors indicates the potential for S&P 500 purchase opportunities. This is a harbinger for Bitcoin as it has historically maintained a high correlation with the above stock indexes.
In this sense, Wu suggests that Bitcoin could also be in the face of preciousness. This makes him believe that the evolution of the stock market could be key to determining the next BTC price address.
Trump’s measures stimulated BTC prices and actions
BTC played US$76,000 last week. This was the lowest price in three months starting in November 2024, with SPX supporting US$5,500.
They have since gotten some recovery, but their markets still show weakness. BTC still cites 25% of the history maximum recorded two months ago SPX is 8% less than the marked records a month ago.
In contrast, gold, which is normally rising during periods of uncertainty, reached its new price record of US$3,000 per ounce, last week, as stated in the graph below.
As reported by Cryptonotics, this scenario is driven by a new rate of imports by US President Donald Trump. Furthermore, he has not denied the possibility that there will be a recession. This cut sales in markets that were already nervous about expectations that tariffs would generate greater inflation.
According to experts, Rates can be pushed down interest rates by pushing the US Central Bank’s Federal Reserve System. And this policy has historically been promoted to action and cryptocurrency, as it means greater liquidity in the economy and lower bond performance.
Therefore, various analysts such as Scott Mercer agree that despite the risk of bear pressure, there may be opportunities to buy Bitcoin collapse in the face of medium and long-term bullish expectations.
Anyway, when it comes to cryptocurrencies, investors show more attention than Bitcoin. Because many people have not recovered the maximum price of their previous bull cycle or have experienced a strong fall. For example, Ether (ETH), which is cryptoactive with post-Bitcoin market capitalization, fell to US$1,700 last week, with prices not registered for more than a year.
Retailers boost cryptocurrency, according to Ari Paul
Alipole, founder of the Block Tower Capital Coverage Fund, distinguishes it There is a significant divergence in the sense of cryptocurrency markets right now.. While prices for native actors and associated assets in the sector are at a crisis, the rest of the ecosystem says they are optimistic.
“All the data I’ve heard is actually a virtually positive project or company related to cryptocurrency that is not dependent on short-term natives,” Paul says. Therefore, the sector is pessimistic, but maintains bullish expectations.
“This reinforces my belief that cryptocurrency is a good purchase within 12 months,” the expert said. This was revealed You don’t see the bottom of short-term insurance decline. Therefore, he made it clear that he was maintaining the coins to buy more in the final surrender stage.
Paul expects the new retail investment phase to arrive in about two to five months when Bitcoin recovers to USD 100,000. When this occurs, it is stipulated that the strongest cryptocurrency will be overcome by others in performance for at least five months.
However, he admits that, given generalized pessimism, he is unsure of which particular assets will achieve the best performance. That’s the reason, We recommend paying attention to market sectors that monopolize more interest.
“A lot of what’s probably thrilling us all and boosting the upward market narrative this cycle is in its early stages,” Paul said. Deepen what they are emerging as a species capital species and a little known project during climbing.
From your perspective, it’s a good time to look for risk capital investments in “traditional” style cryptocurrency. This makes him argue that he refers to people who provide long-term sustainable value creation without a rapid monetization scheme.
In this context, despite the reaction, the idea that the cryptocurrency cycle, which began two years before the end of the last crypto winter, has not yet finished, is still valid in the market.
(tagstotranslate) Analysis and research
