SPX 500 leaves Bitcoin in the dust following COVID-19 vaccine advancements
|- The S&P 500 had a massive jump following news about coronavirus vaccine advancements.
- Bitcoin price initially followed the index but suffered an enormous rejection at $16,000.
Pfizer and Biontech announced a potential vaccine candidate against COVID-19 that seems to have a 90% effectiveness. The submission for Emergency Use Authorization (EUA) to the US Food and Drug Administration (FDA) will happen right after the required safety milestone is achieved. Dr. Albert Bourla, Pfizer Chairman and CEO, stated:
"Today is a great day for science and humanity. The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19."
Right after the announcement, the S&P 500 and other indices jumped significantly, with Bitcoin following closely. However, the flagship cryptocurrency had a rejection at $16,000, breaking correlation.
Bitcoin price faces steep resistance at $16,000
After a massive 12% price spike on November 5 towards $15,750, Bitcoin started to slow down and finally saw a rejection at $15,960 on the next day. The flagship cryptocurrency has attempted to crack $16,000 again in the past 24 hours without successs.
BTC/USD 4-hour chart
So far, BTC price is down by 4% and seems to be pointing at the 50-SMA at $14,570 as an initial price target. The low at $14,344 established on November 7 can also become a potential key level, followed by $14,000, the 100-SMA.
BTC IOMAP chart
Despite the current selling pressure, the In/Out of the Money Around Price (IOMAP) chart shows stronger support than resistance. The support area between $14,869 and $15,313 with 534,000 BTC in volume greatly outweighs the resistance range at $15,332 - $16,240 with only 197,000 BTC.
Considering that a potential coronavirus vaccine might be ready and that the S&P 500 and other indices are turning bullish, a breakout above $16,000 could easily drive Bitcoin price towards $17,000.
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