A well-known cryptocurrency analyst and trader believes Bitcoin (BTC) is poised to climb with the US stock market.
Crypto trader Kevin Svenson tells his 69,000 YouTube subscribers in a new strategy session that Bitcoin has recently demonstrated a roughly 90% correlation with the S&P 500.
He also claims that the S&P 500 has reached “extremely oversold levels” on the weekly relative strength index (RSI), a measurement that measures an asset’s market momentum. Svenson points out that the index hasn’t been this low since the Covid crash in early 2020.
According to the expert, the S&P 500 has not spent much time at these historically low RSI levels. He believes equities are “ready for some kind of rally,” particularly given the index recently fell to a critical Fibonacci level at the end of last week.
Svenson believes Bitcoin will follow the S&P on a “multi-week reversal back to the upside,” however he believes there is a “high potential” BTC would fall in price later.
According to the analyst, Bitcoin might test as high as its present downward-sloping resistance line before falling to lows later. BTC’s price could rise to prior support levels near $36,200 or previous candle closure levels near $37,500.
At the time of writing, Bitcoin is worth $29,305. The top-ranked cryptocurrency asset by market capitalization has dropped more than 2.5% in the last 24 hours.
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