Bitcoin has decisively broken through its own 200-day moving average of $85,046 over the weekend, signaling a potential bullish trend and targeting its short-term holder realized price resistance level at $93,245.
The S&P 500 has pushed above its 200-Day Moving Average for the first time since March 10, potentially signaling a bullish long-term trend. This technical breakout in equities and crypto is accompanied by a move above $88,000 for ‘Bitcoin (BTC)’, which is now targeting its short-term holder realized price resistance level at $93,245.
The S&P 500, or Standard & Poor's 500, is a stock market index that represents the performance of the top 500 publicly traded companies in the US.
It is widely considered a leading indicator of the overall health of the US economy.
The S&P 500 is market-capitalization-weighted, meaning that larger companies have a greater impact on the index's performance.
The index is reviewed and updated quarterly to ensure it remains representative of the US market.
Understanding the 200-Day Moving Average
The 200-Day Moving Average is calculated by taking the mean of the closing prices over the past 200 trading days. It is often used to assess broader market trends and potential turning points. The S&P 500 last crossed this gauge on March 10, but resumed an uptrend shortly after.
Bitcoin’s Move Above $85,046
Bitcoin has decisively broken through its own 200-Day Moving Average of $85,046 over the weekend. This move is significant, as it indicates that ‘Bitcoin’ is now trading above a key level of resistance. The next major resistance level for ‘Bitcoin’ is at $93,245, which corresponds to the short-term holder realized price – i.e., the average on-chain acquisition cost of coins held outside exchange reserves and moved within the last 155 days.
Implications for the Market
The correction in stocks could be over based on a key technical indicator. If this trend continues, it might be good news for ‘Bitcoin’, which has also breached similar resistance levels. The S&P 500’s move above its 200-Day Moving Average is a positive sign for the market, and ‘Bitcoin’s’ recent break above $85,046 is a strong indication of renewed bullish momentum.
James Van Straten’s Expertise
As a Senior Analyst at CoinDesk, specializing in ‘Bitcoin’ and its interplay with the macroeconomic environment, James Van Straten provides expert insights on this topic. His work focuses on monitoring flows to analyze ‘Bitcoin’s’ role within the broader financial system.
