Bitcoin (BTC) to S&P 500 (SPX) Ratio Remains a Crucial Chart to Watch

Daan Crypto Trades highlighted that it is crucial to continue to closely follow the Bitcoin to S&P 500 (BTC/SPX) ratio as it remains one of the most critical ones.

Daan Crypto Trades highlighted the importance of continuing to closely follow the Bitcoin to S&P 500 (BTC/SPX) ratio as it remains one of the most critical ones.

This chart, according to Daan, cancels out the disturbance in the equities markets, which have been weak recently. The support for the BTC/SPX ratio has remained high at 2024 and has kept base through various fluctuations.

suggest that the BTC/SPX ratio will rise once equities find some sort of bottom and/or some uncertainty gets removed out of the market.

He also noted that traders should keep an eye on bonds, which have been struggling in some ways for the past few days because of the BoJ’s emergency meeting.

The end of QE was bullish for Bitcoin, while the beginning of QE, which has yet to be seen, may result in Bitcoin rising or reverting to its mean.

The Federal Reserve has not intervened to restore order in the markets, and the problems in the bond market may force it into action. He urged the traders to be particularly attentive to the developments in the Bank of Japan, as further actions could significantly impact the markets.

Potential Bearish Continuation

From the hourly chart, BTC seems to be encountering resistance around $77,906. If the bulls fail to regain the upper hand in the upcoming 30 minutes, the price may drop back down to the next support level at $74,578.

Furthermore, from bigger time frames, the BTC/USD price is still below critical levels and contingent on the daily candlesticks to decide the stability of the support area at $74,457.

A breach of this level for lower prices could likely lead to an extension of the bearish trend all the way down to between $70,000 and $72,000.

At a mid-term level, there are no reversal indicators for Bitcoin. If the weekly candle closes at or around what is now being Googled at $73,881 near this weekend, then it will be possible for Bitcoin to re-aim towards $70,000 in the near future.

According to the analysis carried out, the ratio of BTC/SPX is an instrument that can still help in the prediction of Bitcoin movements in the midst of the market volatility. The events in the bond market and the current global economy suggest that Bitcoin may produce large swings ultimately affecting both short and long-term investors.