Correlation of Bitcoin and S&P 500 is close to record values
Bitcoin and S&P 500 show a positive correlation great part of the current year.
Particularly high correlation was for three separate periods.
SPX follows the upward support line and bitcoin broken by the falling wedge.
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Bitcoin rate (BTC) and the index S&P 500 (SPX) show a positive correlation for most of the current year. After two month hiatus, the correlation of two assets again approached record highs.
First of the year bitcoin rate and American index S&P 500 bulk time carried out in a positive correlation, as shown in the lower part graphics. Levels below zero indicate low correlation, then as a unit signals a close correlation. The middle of the range, respectively, is represented as mark 0.5.
Since the beginning of the year, there have been three main period with a high correlation of two assets:
- January 9-31
- February 16 – April 6
- June 13 to present
Conversely, periods of low correlation were recorded on the following dates:
- January 31 – February 16
- April 6 – June 13
After a long period of lack of correlation two the asset returned to the relationship, which should remain at least in the near future.
Correlation is again at historic highs. Have you noticed this trend? High levels of fear and uncertainty lead to a closer relationship between the two assets.
Below we will analyze the dynamics of both assets and try to determine their prospects..
Following the upward support line, S&P 500 has been rising since March 13, when the index hit bottom. Now quotes came across resistance $ 3150, where the level of 0.79% Fibonacci retracement relative to the previous bearish move also passes. Initially price exceeded this mark, but could not maintain the upward momentum and retreated.
Because the line upward support and region resistances match, soon can expect a significant breakthrough in Tom or another direction. IN the whole both options are possible, but an upward breakout looks like more likely due to bovine intersections of 50- and 200-day moving averages, which act as support.
Bitcoin breaks falling wedge pattern on June 22. but the breakout occurred at low trading volumes, and since then quotes have reversed back to their original levels. maybe, this just retesting the wedge, but the downside momentum and low trading volumes on the breakout do not favor such a scenario.
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