Since the lows recorded in March, Bitcoin and the S&P 500 have experienced a strong recovery.
The main cryptocurrency peaked at more than 170% of the price of the March low, while the S&P 500 went from ~ 2,150 points to a recent high of 2,950 dramatically.
Assets around the world have recovered from optimism about the reopening of the global economy as the spread of COVID-19 slows down.
But there are fundamental and technical signs that the recovery may be unfounded. For example, while the S&P 500 is already ~ 12% below its historic highs, the data shows gains in the United States. USA They're collapsing, which can hurt both Bitcoin and the S&P 500.
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S&P 500 and Dow Jones show bearish signs
Analysts have traced a bearish reversal of the S&P 500, the Dow Jones and the global economy.
At the end of Tuesday's trading session in the United States In the United States, the main stock indexes had their worst trading days in a while, with the S&P 500 down 2%. This may be the start of a broader bearish trend.
A popular Bitcoin the merchant shared the following tableNoting how the S&P 500 sees resistance at four key levels: Fibonacci 0.618 retracement from historic high to March lows, the 100-day moving average, the 200-day moving average and the psychological level at 3000.
He hinted that there was a good chance that these levels would come back to the fore and that prices would drop again.
@JonnyMoeTrades' graphic (Twitter)
This bearish skepticism was shared by others, who have made observations like the Dow Jones is negotiate in a clear manual, the S&P 500 is impression precise Wyckoff distribution, and some actions show signs of "fatigue" in bears.
Basically, things are not much better for stocks.
The following chart from Charlie Bilello of Compound Capital Advisors shows that the S&P 500 is on track to achieve its “lowest GAAP quarterly profit since the first quarter of 2009”.
The S&P 500 Index posted the lowest GAAP quarterly profit rate since the first quarter of 2009. $ SPX pic.twitter.com/QCtEHXehzm
– Charlie Bilello (@charliebilello) May 11, 2020
Related Reading: Market Research: There is a 77% Chance to Trade Bitcoins at $ 10,000 This Week
Bitcoin could sink with stocks
Kansas City Federal Reserve popular that during periods of economic "stress", Bitcoin has a positive correlation with the S&P 500 index at a level "significant at the 5% level".
In contrast, during times of stress, the prices of 10-year Treasury bills and an ounce of gold are slightly negative with the S&P 500. BitMEX CEO Arthur Hayes corroborated this story. He wrote in a recent bulletin:
Photo by Johannes Plenio on Unsplash
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