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Top-level cryptocurrency analyst and strategist DonAlt suggested that Bitcoin (BTC) might need support from the stock market to reach its all-time highs. The analyst, known for accurately predicting the bottom of the largest cryptocurrency in 2022, now believes Bitcoin is ready to break out of its current consolidation phase.
Bitcoin Could Show Strength by Keeping Up with the S&P 500
Despite positive developments in the cryptocurrency market, Bitcoin has remained relatively weak compared to the stock market and has not shown enough strength according to most views. DonAlt made a significant prediction, highlighting that Bitcoin’s price movement might depend on the strength of the US stock index S&P 500. According to him, if the S&P 500 continues its upward trend and Bitcoin stays above $65,500, it could reach new highs.
The analyst noted that Bitcoin’s recent relative weakness is concerning and emphasized the importance of the S&P 500’s performance. He underlined that Bitcoin’s ability to reach new highs largely depends on the S&P 500 maintaining its strength.
The S&P 500 Should Be Closely Monitored
Bitcoin closed last week above the $65,500 mark indicated by the analyst, and at the time of writing, its price is trading above the $66,000 threshold at $66,165. The analyst’s analysis suggests that Bitcoin’s near-term movement could be closely tied to broader market trends in the US stock markets, particularly the S&P 500.
Currently, the S&P 500 is around its all-time high of 5,441 reached on June 13, 2024, standing at 5,431.
Overall, DonAlt’s analysis highlights the interconnectedness of different financial markets and the potential impact of stock market movements on Bitcoin’s price. In this regard, investors and traders need to closely monitor both Bitcoin’s price action and the S&P 500’s performance to determine the future trajectory of the largest cryptocurrency.
