Bitcoin's Price Movements Now Seem to Mirror the Nasdaq-to-S&P 500 Ratio

Bitcoin recently surged to an all-time high of $93,445 before pulling back to $90,000—a key level that aligns with a significant trendline from its 2021 peaks.

Bitcoin’s recent price surge and subsequent pullback to the $90,000 price point seems to correlate strongly with the Nasdaq-to-S&P 500 ratio, indicating a potential link between the movements of the cryptocurrency and the direction of the NDX/SPX ratio.

This correlation has sparked varying reactions among traders, with some remaining optimistic about Bitcoin’s long-term potential and others expressing caution and advising traders to monitor the situation closely.

Bitcoin Surges, But Key Resistance Looms

Bitcoin recently surged to a new all-time high of $93,445 before pulling back to the $90,000 price point, a crucial level that aligns with a significant trendline from its 2021 peaks.

This trendline now serves as an important resistance point, and it will be crucial to watch as Bitcoin’s price fluctuates around it.

However, there’s more to the story. Interestingly, Bitcoin’s price movement mirrors a pattern seen in the Nasdaq-to-S&P 500 (NDX/SPX) ratio, which tracks investor sentiment in tech and emerging sectors.

Here’s what it means for you.

Bitcoin’s Link with the NDX/SPX Ratio

Since 2017, Bitcoin has shown a close relationship with the NDX/SPX ratio, with both often moving in sync, rising and falling together.

This connection was particularly clear in April 2023 when Bitcoin, trading under $30,000, seemed to follow the bullish signals from a rising NDX/SPX ratio.

As the ratio reached new highs in July, Bitcoin also followed, hitting record levels.

Now that the NDX/SPX ratio has pulled back below its trendline, Bitcoin has mirrored this move, dropping back to $90,000.

If this correlation continues, Bitcoin could remain below $90,000 for a while. However, if the NDX/SPX ratio turns upward again, it could signal a new Bitcoin rally, with some traders eyeing a breakout past $100,000.

Bitcoin’s Next Move

Traders are closely watching Bitcoin’s options and futures markets, which suggest it might stay near $90,000 until a decisive shift in the NDX/SPX ratio.

If this ratio rebounds, indicating greater investor risk appetite, Bitcoin could rise even higher.

This highlights Bitcoin’s growing connection to traditional financial markets and investor sentiment.

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