Since Monday, the Bitcoin (BTC) price has increased considerably, while the S&P 500 (SPX) has been recording losses.
This discrepancy was noted by Bitcoin trader @ZackVoell, who tweeted an image that shows a side-by-side comparison of the Bitcoin price (left) and the SPX (right). In the image, it is clearly visible that BTC has gradually moved upwards, while SPX has decreased sharply.
Bitcoin/SPX Comparison
Since Monday when the markets for the SPX opened, BTC (red) gradually moved upwards while SPX has moved in the other direction. This has continued the negative correlation that has been present between the two markets since April 23.
When looking at the SPX price individually, we can see that it broke down from an ascending support line yesterday and has been decreasing at an accelerated rate since.
Today, the price began an upward move but was rejected by the 200-hour MA, initiating another sharp drop. The closest support area is found at $2,790.
Bitcoin Insight
The relationship of the BTC price to its 200-hour MA is very similar to that of the SPX with its respective MA. The price was rejected on May 11 and subsequently dropped.
Currently, the BTC price has broken out above this level and is trading for $9,500 coinciding with the next significant Fibonacci level as well as the long-term descending resistance line that it has been trading under since the end of 2017.
If BTC is able to reach the next Fib level, we could see prices back to $9,800-$10,000 by the weekend.
To conclude, the short-term pattern in which BTC increases while the SPX goes down is expected to continue, at least in the short-term. Bitcoin is, however, up against heavy resistance levels now and could follow the footsteps of the SPX if it is not able to break above.
