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The interrelationship of the s.
Meanwhile, the S&P 500 just closed its January monthly session outside of a key trend line the entire world of finance has been watching. Here's why a potential break in the equity market could propel btc higher with it in a perfect storm scenario.
The stock market closes the monthly price point above the main trend line.
The S&P 500 index is often considered the best measure of the overall health of the US stock market, and indirectly, the economy. It’s used as a benchmark to compare the alpha and beta of other assets and individual stocks.
Positive performance in the SPX is associated with periods of prosperity and profitability. If the stock market is healthy, this is a signal for investors to shift to risk strategies.
The S&P 500 could be breaking out of a year-long pattern | SPX on TradingView.comThe S&P 500 is potentially breaking out of the upper boundary of a long-term trading pattern: a descending broadening wedge. Price is holding above the pattern on the daily timeframe through the January monthly that just came to a close.
And while further upside would bode well for cryptocurrencies by default, increasing correlation between BTCUSD and the SPX is what makes a possible breakout in the stock market that much more bullish for Bitcoin.
Relates Bitcoin with S.
The graph above shows the breakdown into shares in the daily and monthly period in the S. Bitcoin price is a few minutes before the closing of its January monthly candle with over 40% king. Other cryptocurrencies have significantly outperformed during the month.
The simultaneous rise in BTCUSD and SPX this month re-established the upward trend in the relationship between the two very different investment vehicles.
The correlation with the stock market is only increasing | BTCUSD on TradingView.comWith a correlation factor of 0.88, the SPX and BTCUSD correlations are among the strongest historically. Bearish crypto markets have changed bitcoin to a negative correlation territory. But this time, it was different.
A growing correlation has historically been associated with some of Bitcoin's most explosive upward bullish movements – particularly after achieving a correlation of 0.93. with the potentially increasing correlation and a potential break in the spx, Could there be a perfect storm for top crypto-currency through market capitalization?
