BTC & SPX Correlation: At The Top Of The Range
Here we're looking at both BTCUSD & the SPX. There's a strong correlation between the Bitcoin price and the stock market. Especially due to the current nature of the market: prices are mainly driven by fear surrounding inflation & interest rate hikes as well as a surging dollar. The thing that bothers me the most is the fact, that any big rally in the market will be suppressed by further rate hikes until we move towards 2% inflation.
There are two more hikes for November & December (both likely to be 75 BPS each) and there is still enough room for another "crash" in the crypto & stock market, which brings us to the idea you're seeing here.
I'm using a straightforward setup that consists of Volume, VRVP, and horizontal/diagonal trendlines. We can observe the price being rejected at the trendline, acting as a resistance. As long as the price is trending below the resistance area, we're still in a downward trend. The VRVP shows us further resistance at the most recent highs. Both charts also show a liquidity gap here, which came along with the relief rally a few weeks ago.
The VRVP also gives us a hint for the local bottom, which is ~$19000 for BTCUSD and 3700 for the SPX.
This is the current range we're moving in. The BTCUSD/SPX price breaking out of those areas (up or down) will result in a sudden & big move.
A lot of market participants are waiting on the sidelines, ready to take action. In other words: there's no reason to take a short-term position. At least for now.
I'm expecting the market to close with a red candle today. The following week, especially in anticipation of the FED meeting on November 2nd/3rd, will be more volatile and our local bottom might be tested again.
I will update this idea on Monday.
Feel free to share your own idea in the comments & also leave a Boost/Thumbs Up if you liked this idea.
There are two more hikes for November & December (both likely to be 75 BPS each) and there is still enough room for another "crash" in the crypto & stock market, which brings us to the idea you're seeing here.
I'm using a straightforward setup that consists of Volume, VRVP, and horizontal/diagonal trendlines. We can observe the price being rejected at the trendline, acting as a resistance. As long as the price is trending below the resistance area, we're still in a downward trend. The VRVP shows us further resistance at the most recent highs. Both charts also show a liquidity gap here, which came along with the relief rally a few weeks ago.
The VRVP also gives us a hint for the local bottom, which is ~$19000 for BTCUSD and 3700 for the SPX.
This is the current range we're moving in. The BTCUSD/SPX price breaking out of those areas (up or down) will result in a sudden & big move.
A lot of market participants are waiting on the sidelines, ready to take action. In other words: there's no reason to take a short-term position. At least for now.
I'm expecting the market to close with a red candle today. The following week, especially in anticipation of the FED meeting on November 2nd/3rd, will be more volatile and our local bottom might be tested again.
I will update this idea on Monday.
Feel free to share your own idea in the comments & also leave a Boost/Thumbs Up if you liked this idea.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.