Market Update: S&P 500 and Bitcoin

The correction in stocks could be over based on a key technical indicator, which might signal good news for Bitcoin (BTC), as it has also breached similar resistance levels.

On Monday, the S&P 500 rose 1.7% following last week’s gains, moving above its 200-day moving average (200 DMA) after experiencing a 10% correction in recent months. This 200 DMA, which represents the mean of the closing prices over the last 200 trading days, is widely used to gauge broader market trends and potential turning points.

The S&P 500 last crossed this level on March 10. Although it declined slightly shortly after, it resumed its upward trajectory, which has continued to the present day.

Similarly, Bitcoin (BTC) is now trading above $88,000 after decisively breaking through its own 200 DMA of $85,046 over the weekend. The next significant resistance for BTC is at $93,245, corresponding to the short-term holder realized price — the average on-chain acquisition cost of coins held outside exchange reserves and moved in the last 155 days. These coins are perceived as the most likely to be spent.

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Source: S&P 500 crosses 200DMA (TradingView)