empty
23.05.2023 10:52 AM
How does the stability of the stock market affect Bitcoin?

Over the past two weeks, the cryptocurrency market has significantly slowed down compared to the bullish March and mixed April. Trading volumes of major crypto assets and the number of daily users have decreased to local lows.

This image is no longer relevant

Simultaneously with this process, we have witnessed the beginning of a prolonged consolidation movement of BTC/USD within the range of $26.6k–$27.5k. Important economic events failed to change the balance of power between bulls and bears, and therefore the price of BTC remained within this range.

Strong stock market

The stock market has become one of the key reasons why Bitcoin and other cryptocurrencies have become less attractive among investors. During March and April, when BTC reached its local high, activity in the stock market stagnated. There were several reasons for this, significantly reducing investor interest in SPX and other instruments.

This image is no longer relevant

The first reason was the mass forecasts of leading banks in the United States and the world regarding pessimistic data during the reporting period. Analysts predicted that weak financial reports would cause a decline in the SPX index to the $3,200–$3,400 levels, which deterred a significant portion of investors.

This image is no longer relevant

The second reason was the crisis in regional banks in the United States, which occurred as a result of the hawkish policy of the Federal Reserve System. Meanwhile, Bitcoin and gold began to oppose the stock market and started moving towards local highs. However, over time, as inflation levels fell and the reporting period ended, the situation changed.

This image is no longer relevant

Insiders are not selling their stocks, as expected, after the spin-up of pessimistic sentiments regarding the publication of financial reports by companies in the S&P 500. This suggests that further market growth can be expected in the near future.

Bank of America confirms this and reports that the forecast for the S&P 500 in 2023 has been raised from $4,000 to $4,300. Overall, the situation in the stock market has stabilized, and therefore the SPX index confidently holds the $4,000 mark. However, there is a fly in the ointment, which lies in the U.S. debt ceiling limit.

Bitcoin and U.S. default

According to the latest estimates, the U.S. government's funds will run out between June 8th and 16th. If this happens, the United States faces a technical default, and the significant increase in the default insurance premium size in 2023 confirms investors' concerns.

This image is no longer relevant

The fear of a U.S. default is another restraining factor for investors in relation to cryptocurrencies. Taking this into account, it can be concluded that financial markets have frozen in anticipation of a resolution of the U.S. debt situation. Therefore, significant price movements should not be expected due to the lack of short-term/medium-term strategies among investors.

BTC/USD Analysis

Bitcoin made a local upward surge but encountered resistance at the $27.5k level, after which it retraced to familiar positions. As of 08:00 UTC, the asset is trading near the $27k level and, with varying success, approaches the upper boundary of the volatility channel. At the same time, trading volumes and address activity remain at a low level.

This image is no longer relevant

Santiment reports that bearish sentiments continue to grow among crypto investors, which usually leads to price growth. Glassnode also notes that long-term holders are not selling their reserves, unlike miners who have significantly increased pressure on the asset's price.

This image is no longer relevant

Technical metrics for BTC on the 1D chart demonstrate the prerequisites for a bullish impulse. The Stochastic indicator is undergoing a broad bullish crossover, and the RSI is approaching the 50 level. Additionally, the MACD is one step away from completing the "bullish crossover" pattern, which is a strong signal for a potential upward movement.

Conclusion

Despite the asset's fundamental value and the commitment of long-term investors, Bitcoin lacks sufficient strength for a strong upward movement. However, technical metrics suggest that a bullish impulse is likely, so it is worth highlighting the order block of $27,250–$27,500 and the final level of $27.5k as the main targets for bulls in the upcoming upward surge.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

El Bitcoin mantiene posibilidades de subir y apunta a los $100 000

Ayer, el Bitcoin subió con bastante fuerza, superando el nivel de $94 000, aunque no logró consolidarse por encima de él. El Ethereum también creció con fuerza, pero luego

Jakub Novak 08:25 2025-04-24 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 24 de abril

El Bitcoin no logró consolidarse en el nivel de $94 000 y se corrigió hacia la zona de $92 500, donde se siente más cómodo. El Ethereum, tras haber alcanzado

Miroslaw Bawulski 08:25 2025-04-24 UTC+2

El Bitcoin apunta al regreso de la tendencia alcista

Ayer el Bitcoin subió con bastante fuerza. Tras superar el nivel de $90 000, la primera moneda digital se dirigió hacia la zona de $94 000, donde desaceleró su crecimiento

Jakub Novak 13:13 2025-04-23 UTC+2

Recomendaciones para operar con el Ethereum el 23 de abril según el sistema ICT.

El Ethereum apenas logró recuperarse hasta el FVG más cercano y durante dos semanas no pudo seguir subiendo. Sin embargo, el Bitcoin finalmente arrastró hacia arriba a su "hermano menor"

Paolo Greco 07:33 2025-04-23 UTC+2

Recomendaciones para operar con el Bitcoin el 23 de abril según el sistema ICT.

El Bitcoin continuó su movimiento ascendente el martes, lo que generó muchas preguntas. Sin embargo, recordemos que el análisis técnico no puede proporcionar señales con una precisión del 100% todo

Paolo Greco 07:33 2025-04-23 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 22 de abril

El Bitcoin ha vuelto a la zona de los $88 000, mientras que el Ethereum está mostrando ciertos problemas. La venta masiva de ayer durante la sesión estadounidense

Miroslaw Bawulski 08:49 2025-04-22 UTC+2

Recomendaciones para operar con el Bitcoin el 22 de abril con el sistema ICT.

El Bitcoin mostró un crecimiento significativo el lunes, lo que pone en duda la continuación de la formación del ciclo bajista. El precio se acerca a los dos últimos máximos

Paolo Greco 07:36 2025-04-22 UTC+2

Recomendaciones para operar con el Bitcoin el 21 de abril según el sistema ICT.

El Bitcoin se activó durante el pasado fin de semana, sin que hubiera razones ni fundamentos concretos para ello. Simplemente el mercado volvió a lanzarse a comprar la primera criptomoneda

Paolo Greco 08:45 2025-04-21 UTC+2

Recomendaciones para operar en el mercado de criptomonedas el 18 de abril

El Bitcoin y el Ethereum permanecen dentro de sus canales laterales y la incapacidad para salir de estos rangos podría poner en peligro las perspectivas de una recuperación más amplia

Miroslaw Bawulski 07:30 2025-04-18 UTC+2

El interés por el Bitcoin y el Ethereum está regresando

Mientras el Bitcoin y el Ethereum aún no logran encontrar la fuerza para volver al mercado alcista, asustando cada vez a los inversores y traders con fuertes retrocesos hacia

Jakub Novak 07:29 2025-04-18 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.