S&P 500 Bounced Off Support, Crypto Rally Underway?

S&P-500-Bounced-Off-Support,-Crypto-Rally-Underway
  • The level of the S&P 500 stock index demonstrated a rebound off the support.
  • Cryptocurrency at large has proved resilient in the past months.
  • Sustained trading above the 100 SMA might result in fresh multi-month highs.

According to a market analysis by a Twitter analyst, Lark Davis, the cryptocurrency rally is underway. This comes after the S&P 500 stock index level showed a bounce off of the support. This indicates a positive trend in the market which has been in bearish sentiment for the past few months.

Even after Wednesday’s rise, markets are still mostly declining. Some investors are staying away from the riskier areas of the market due to worries about the economy slowing down and future rate increases from the Federal Reserve.

Despite being on a downtrend since November 2021, cryptocurrency has proved resilience to weather this terrible economic storm not seen in decades when fiat currencies like the Pound, Euro, and Yen are all struggling. Bitcoin bottom too has been reached and charts are pointing to a bounce back.

A Reddit member writes in a post that the price will feel free to move in any direction once the Alpha-Beta trend channel passes the present RSI line. When this state of affairs occurs, then the crypto market will stop dropping.

Bitcoin appears to be obliterating all of its longs right now. It currently destroys lengthy liquidations of $40 million in under 30 minutes. In particular, it appears to have suffered a comparable loss of $100 million during the past 24 hours.

Therefore, a sustained trading above the 100 SMA might result in fresh multi-month highs for the S&P 500. Even a retest of the trend line is possible! The index may reach regions of interest nearer to the 200 SMA if it breaks through this crucial resistance zone. 

On the other hand, discussions of rallies in negative markets would be supported by a downward breakout from the current consolidation.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer