At the beginning of the week, facing strong selling pressure, Bitcoin‘s (BTC) price experienced a surprising 5% increase on January 26, rising to $42,000. The largest cryptocurrency is currently trading at $41,809 with a market value of $819 billion and a 4.26% increase over the last 24 hours. Data indicates that Bitcoin’s recent price surge was aided by the tailwind of the S&P 500 index.
Bitcoin’s Price Follows the Rise in Stocks
Chain data provider Santiment recently updated that Bitcoin’s price has surpassed the $42,000 level, but altcoins have yet to respond to this rise. Santiment noted that the rise in Bitcoin coincided with the S&P 500 index reaching its all-time high (ATH), supporting the argument that it acts as a tailwind for the cryptocurrency market.
Currently, there is a prevailing belief that Bitcoin and other leading altcoins have the potential to rise to average levels and catch up with the stock market’s performance. Notably, the cryptocurrency market is facing a significant delay in rallying compared to the stock market, a trend that became more pronounced since January 17, with the two markets moving in opposite directions.
As distinct dynamics emerge between the cryptocurrency and traditional markets, the hypothesis of a potential correlation between Bitcoin, major altcoins, and the stock market gains traction, allowing market participants to make significant observations.
Potential Rise to $43,000
On the other hand, cryptocurrency analyst Ali Martinez reported that the TD Sequential indicator has given a significant buy signal for Bitcoin on the daily chart. The analyst also emphasized that Bitcoin maintaining a positive position above the 100-day Simple Moving Average (SMA) sets the stage for positive price movements.
Martinez also pointed out that the recent surge, which surpassed the $40,550 threshold, could serve as an important catalyst for Bitcoin’s price to reach $43,000. Of course, the analyst’s optimistic outlook depends on Bitcoin’s ability to continue its current upward trend and trigger the expected rise.
Moreover, Martinez highlighted the importance of monitoring the 100-day SMA as a support level, while also issuing a warning. According to the analyst, if the price falls below this support level, it could push Bitcoin towards a downward target of $33,300. Additionally, Martinez noted a significant increase in active Bitcoin wallet addresses, surpassing the 1 million mark, indicating high interest in Bitcoin and increased network usage.
