BTC & S&P 500: Correction Looming After Recent Rally?

by

<a href="https://minority-mindset.com/btc-usd/">BTC</a> Price Outperforms S&P 500 This Week: Correction Coming for Both Assets? (April 9 Update)

The S&P 500 recovered strongly last week, nearly erasing losses caused by concerns about the Middle East conflict. Bitcoin actually performed even better. However, both are now facing potential barriers to further gains, raising the question of whether a pullback might be coming soon.

Rejection next for the S&P 500?

The S&P 500 has performed very well over the past week, gaining about 7%. However, after recovering from a recent low, it’s now facing strong resistance around the 6,800 level. It’s likely the index could fall back from here, potentially even dropping below its recent low point. The outcome may be influenced by developments in the current Middle East ceasefire negotiations.

Potential last spike then back to $69K?

Since late March, Bitcoin’s price has been consistently making higher highs and higher lows, bringing buyers very close to breaking through a long-term downward trend. However, recent price action shows some potential weakening, with the price failing to sustain gains above $71,700, suggesting buyers might be losing momentum.

Generally, positive developments in the Middle East would likely cause prices to increase, mirroring stock market gains. However, prices could just as easily fall if the situation there deteriorates.

Currently, the price might briefly rise to challenge the downward trend, before potentially falling back down to around $69,000.

RSI indicator rejection in daily time frame

On the daily chart, the 50-day moving average is currently acting as a support level for Bitcoin’s price, and looks poised to help it start climbing again.

However, the Relative Strength Index (RSI) suggests the price might soon reverse direction. The RSI line appears to be hitting a resistance level, and if this holds, we could see the price break down from its current bearish pattern.

Price direction for next couple of months about to be decided

Over the next week, the market situation is still uncertain, but sellers currently have more control as long as the price remains within the established downward trend.

However, the MACD suggests the blue line is starting to move back above the red line. It remains to be seen if this trend will continue throughout the week, as positive momentum might be weakening.

A clear trend will likely emerge in the next week or two, and whatever direction things move in could stick around for a while – possibly for several months. The big question is, what will happen?

Read More

2026-04-09 15:10