Bitcoin Lags Behind S&P 500, Signaling Potential Bullish Catch-Up
July 13 2024 - 8:30AM
NEWSBTC
Bitcoin has managed to record some price gains in the last week
following a brutal market sell-off at the start of July which saw
the crypto market leader lose 10% of its price on July 5. At
the moment, analysts continue to roll out observations and
predictions that suggest that Bitcoin may soon pull off a market
rebound and perhaps eventually embark on a highly-expected bull
run. Related Reading: Institutions Grab Over $5 Billion Bitcoin in
a Week: Are They Predicting a Mega Rally? Bitcoin’s ‘Rare’
Underperformance Hints At Possible Bullish Rebound In an X
post on Friday, prominent blockchain analytics company Santiment
provided some intriguing insights into Bitcoin’s recent price
behavior. Santiment stated Bitcoin is largely behind the
S&P 500 and other equities in relation to price performance, a
development which they described as a “rare sight” over the last
three years. As earlier stated, Bitcoin’s current massive
price dip can be attributed to a large-scale market sell-off mainly
by the German Government who have now completely offloaded their
total BTC holdings valued at $2.9 billion. Furthermore, the
defunct crypto exchange Mt. Gox which collapsed in 2014, finally
began the repayment of a $9 billion debt to creditors in BTC and
BCH, the majority of which were expected to be sold, thus a
prompting massive selling pressure. While Bitcoin showed some
resilience this week gaining by 2.88%, the premier cryptocurrency
still trails the positive price performance of the equities market
on a larger timeframe. For context, Santiment explains that Bitcoin
has declined by 19.4% in the last five weeks while the S&P 500
has recorded a 5.4% gain within that same period. However, as
this development has been a rare occurrence in the last three years
as both assets usually moved in tandem, Santiment suggests Bitcoin
may experience a “bullish catch-up period.” Related Reading:
Bitcoin Price Trajectory Remains Bearish, $49,000 Liquidity Zone
Looms As Next Downside Target Bitcoin To Challenge 1.5-Month
Downtrend In other news, crypto analyst Rekt Capital has noted that
Bitcoin is currently battling to end a downtrend stretching over
the last one-and-a-half month. During this period the premier
cryptocurrency has lost over 18% of its price. According to Rekt
Capital, Bitcoin has attempted to break out of this downtrend
multiple times including three times in the last three days. If
Bitcoin eventually pulls a trend reversal, the market leader may be
set for full price recovery reaching as high as $71,000. At the
time of writing Bitcoin trades at $58,170 with a 1.69% gain in the
last day. However, this mild price pales in comparison to the
comparison which has surged by 30.81% to a price of $5,615 in the
last 24 hours. Featured image from The Economic Times, chart
from Tradingview.com
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