The positive news the price of Bitcoin will be more frequent. Recently, we have reported that a notorious bullish indicator is given in the last days of a Signal, its counterpart from the year 2016, the Bullrun, followed by 4,000% to 20.000$.
In addition, we have taken this Morning 7 fundamental reasons why the price of Bitcoin in the future will grow.
The Whole thing is now crowned by a bullish Signal that has produced the S&P500. Why is the price of Bitcoin of relevance, we will explain to you now.
Bitcoin price is driven by the Golden Cross on the S&P 500?
The S&P 500 is a stock market index containing the stocks of 500 of the largest publicly traded U.S. companies. The Index is weighted by market capitalization and is one of the most followed stock indices in the world.
Now it looks currently as if the S&P 500 would form a Golden Cross, which is generally considered as an indication for an upward rally, and the might also be a positive sign for the Bitcoin price. Why do we explain the same.
Source: Bitcoin Shop, Trading View.
It is important to note at this point that the last of such signals in both cases, in fact, an upward trend of approximately 40% and 17% followed (see above Chart). For a shares Index, which is a considerable movement right when we are used to in Bitcoin and all the Altcoins rates to far the other values.
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This could also represent an indirect bullish Signal for the Bitcoin exchange rate. The reason for this is the increasing correlation, the Bitcoin price has with the S&P 500.
The monthly correlation recently reached the highest value of 78.8%, while the annual correlation is now increased to 38.3%, and thus also on a longer-term positive dependence between the price of Bitcoin and the S&P 500 suggests.
Image source: skew.
This is definitely a new development, initiated by the March Crash, since here, too, in the past, to recognize in the long term, no correlation was found. Even if such a relationship enthusiast or Bitcoin are likely to not taste, could have an impact on the basis of the above indicator, at least in the short term, a positive effect on the Bitcoin price. Because if this Trend of the correlation and the Golden Cross continue to be a reliable indicator for the S&P 500 could follow the price of Bitcoin, the example of the Index and in the next days and weeks a noticeable rise.
Why, the Whole thing could in the medium term, there is a serious danger to the Bitcoin price, have explained to the authors on Bitcoin Shack in yesterday’s detailed analysis. Anyone who is interested in a counter-presentation of the last predominantly bullish Bitcoin forecasts, should these necessarily have to be read Now analysis.
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(Image Source: Shutterstock)