In previous posts, we explained that Bitcoin $BTC is very strongly correlated with the main index of the planet SP500 and this correlation continues to this day.
The SP500 index closes in the red zone for 3 weeks in a row and Bitcoin follows the index for exactly 3 weeks.
Obviously, the further dynamics of the crypto market will depend on the SP500 index.
❓ How long will the SP500 index fall?
The picture shows the index chart for the last 14 years, 1 candle = 1 quarter (3 months).
The index has been moving within the ascending channel for a long time.
Sometimes the index goes beyond the boundaries of the channel, but quickly returns back.
Historically, the price spends most of the time above the middle of the channel.
Now the price has essentially just returned above the middle of the channel after trading at the lower border for 2 years! 😳
This means that most likely there will not be a deep correction in the near future.
And if it does, then its duration will be no more than 1-2 months and then long growth follows 🚀
🔬 If you look more locally on the weekly timeframe:
The price is moving within the medium-term ascending channel and now the price is at the lower border of this channel.
Below are serious supports in the form of the psychological level of 5000 points, long-term moving averages and the middle of a long-term ascending channel.
Also, below is the previous historical maximum of 4818 points.
If the index breaks and consolidates below the lower boundary of the medium-term channel on the weekly timeframe, then we can expect a continuation of the fall to 4770-4822 points.
Further growth continues.
💰 It turns out that Bitcoin has a situation similar to that of the index.
Both assets have either already completed the correction, or there is still 1 wave of decline left.
Therefore, it’s time to gain positions while the market provides such opportunities.
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