S&P 500's Role in Crypto Market: Analyst's Warning

MARKET_WATCH Economy

Prominent pseudonymous crypto analyst “DonAlt” recently offered his perspective on the intriguing interplay between the S&P 500 and the crypto market. DonAlt, who has over 500,000 followers on X (formerly known as Twitter), posits that the fortunes of Bitcoin, and the broader crypto market, are closely tethered to the stock market’s performance. His cautionary note is that a slowdown or signs of fatigue in the stock market’s bullish trend could trigger a substantial correction in the crypto market. In the past several days, DonAlt has shared a series of insights about the Bitcoin (BTC) price on X. 

 

His observations have mainly been bearish, reflecting a cautious outlook on the cryptocurrency’s near-term prospects. On July 26, DonAlt noted that despite a slight increase in Bitcoin’s price, the cryptocurrency remained in bear territory. He suggested that a daily close above $30,000 could indicate a shift in market sentiment, potentially signaling that bullish investors are regaining some control. However, he emphasized that this was the minimum requirement for him to adopt a more optimistic stance. The following day, DonAlt updated his followers on the retracement of the previous day’s price increase. He expressed a pessimistic view, pointing out that the inability to maintain even the minimum gains could signify a deeper bear market. On August 1, DonAlt continued to monitor the $30,000 level as a key indicator of bullish momentum. He acknowledged the $27,000 level as a support but was not convinced enough to place a blind bid at that price.

 

 Instead, he preferred to wait for a clear sign of bullish momentum. His overall sentiment remained bearish. By August 2, DonAlt observed a squeeze on both bulls and bears, resulting in a bearish retest. He reiterated his bearish stance, stating that as long as Bitcoin’s price was closing below $30,000, the market was more bearish than bullish. He concluded by saying he would remain on the sidelines until further notice. At the time of writing, Bitcoin is trading at around $29,019, down 0.5% in the last 24 hours. 

 

Source : [S&P 500's Role in Crypto Market: Analyst's Warning]- CryptoGlobe / August 05, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.