Bitcoin is set to rally against stocks, possibly chasing new highs
Bitcoin (BTC) treaded water on Wall Street Thursday as the S&P 500 hit a new all-time high.
Key Points:-
Bitcoin remains locked at $74,000 after the S&P 500 hit a new record high.
Analysis warns that US mid-term elections could affect the stock rally.
Bitcoin could lift the Nasdaq 100, one trader suggests.
BTC price crashes after S&P 500 hits new highs.
Data from TradingView showed that the price of BTC hit $74,000 during the day.
US jobless claims came in below expectations with 207,000 and 213,000, pointing to the current geopolitical and inflation-resistant labor market.
These followed a new record for the S & P 500, which for the first time in history, Bitcoin exceeded 7,000 points after reaching a two-month high.
Commenting, trading input for property firm Mosaic has seen the S&P gain about 11% over the past 11 trading sessions.
“It's the fifth fastest recovery to record highs following a deep pullback,” he wrote in the latest “Mosaic Chart Alerts” update.
The S&P closed firmly above the 7,000 level for the first time in history, despite ongoing unrest in the Middle East, which resulted in a 9% decline at the end of March.
Gold fell to an intraday low and WTI crude oil touched $94 a barrel as markets awaited further signs on the US-Iran war.
QCP, meanwhile, warned that current trends could still stall the stock rally as the US heads into midterm elections. The S&P 500, he noted, “tends to peak before the midterm elections and then recover in the final quarter of the year.”
“I don't base any investment decision or opinion based only on current periods, that's why I'm looking at the proof,” he warned.
A trader sees “opportunities” in Bitcoin and Nasdaq
With BTC price action at the top of the resistance range, market participants looked to order-book liquidity for clues as to where the next rally might come.
Related: Bitcoin Could Grow ‘Probably Bigger' Than $30T+ Gold Market – Analysis
“The price bucket has a large amount of open interest that has gradually accumulated at $72.2K – 72.4K,” Shub Varma, CEO of crypto data platform HighBlock, told Cointelegraph earlier in the day.
“We've seen this level where traders often move, get in and out. Most recently, about $100 million worth of longs and shorts have opened here, bringing the total to about $400 million in that price bucket, over the past seven days (per Binance stablecoin perps).”
Varma added, “If the price rebounds, it could create an area of support, as many of these longs and shorts could break out at a broken ‘psychological' level.”
Continuing the stock theme, crypto trader Michael Van de Pop pointed to Bitcoin's correlation with the Nasdaq-100 index as a reason for optimism going forward.
“Bitcoin is going to follow Nasdaq,” he told X's followers.
“The reason for this is very simple: the relationship has often been very strong. This season? The weakest relationship in the last 10 years.
Van de Pop recently saw a bullish setup similar to gold in Bitcoin and sees a “huge opportunity” for Bitcoin buyers.
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