The bullish action on Bitcoin and the entire crypto market at the moment set it off from the stock market, which saw a massive drop over the past weekend.
Bitcoin versus S&P 500
Bitcoin price has risen steadily since bottoming out during the correction below $ 30,000 on July 21st.
In contrast, the S&P 500 Index started a downtrend in early September and has lost around 5.2% from its all-time high (ATH) of 4,536.95 on September 2nd.
Bitcoin vs S & P500 price chart | Source: TradingView
The graph shows that the divergence really became apparent in late September as the stock market continued to fall.
October is a bad month for the stock market
Cryptocurrency analyst Scott Melker, also known as “The Wolf Of All Streets”, has watch saw this action late last week as stocks continued to sell out.
“The stock market was completely down today. But Bitcoin is bullish. “
The outages of Facebook, Instagram, and WhatsApp last night didn’t help the stock prices of the tech giants that dominate the S&P 500 index. The Nasdaq also closed on Monday at its lowest level since June 22nd and could look forward to testing its 200-day long-term moving average test (DMA-200).
According to historical data, October was a bearish month for the stock market, one factor that could compound this is the fact that stocks have risen so sharply, hitting new ATHs in the first eight months of the year.
follow Market observationOctober was the most volatile month for stocks and saw two of the worst recessions in US market history. Analysts have used the term “black swan” to describe what could happen in the market this month.
Holding valuable assets like bitcoin and gold is perfect when the stock market is volatile. Bitcoin analyst PlanB still believes there is still much to be done in the current bitcoin bull market. In an update of its stock-to-flow (S2F) model, PlanB explain:
“My prediction: This second stage of the bull market will be at least six months away.”
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According to BeinCrypto