A popular crypto analyst and trader, Bitcoin (BTC) thinks its price is ready to bounce with the US stock market.
Crypto trader speaking at the strategy session he posted on his YouTube channel Kevin SvensonHe noted that Bitcoin has recently been around 90% correlation with the S&P 500.
He also noted that the S&P 500’s ‘weekly relative strength index (RSI), a metric that measures an asset’s market momentum (mobility), is currently at ‘oversold’ levels. Svenson underlined that the index has not reached such a low point since the COVID-19 collapse in early 2020.
The analyst also thinks that the S&P 500 tends not to spend much time at these historically low levels in the RSI. He stated that the index dropped to an important Fibonacci level, especially at the end of last week, and the biggest reason for this was that the stocks were ‘some kind of rally’.
Svenson predicts Bitcoin will follow the S&P 500 with a “multi-week reversal” but BTC priceHe thinks there is a “strong probability” that the coin will reach a lower level later on.
The analyst noted that Bitcoin could then test as high as the current downward sloping resistance line before falling lower. BTC price could continue higher towards previous support zones around $36,200 or candle closing zones around $37,500.
Bitcoin is trading at $29,305 at the time of writing. The top-ranked crypto asset by market cap has lost more than 2.5% in the past 24 hours.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.