- US stock indexes fight off bears and recover from recent fall, driving Bitcoin and Ethereum gains.
- Analysts believe Bitcoin has bottomed out and the asset could start breaking to the upside consequently, as trend reversal is in place.
- Ethereum has climbed above $2,100, a key level for the altcoin and analysts predict a continuation of the upmove.
Bitcoin and Ethereum have a high correlation with US stocks. The recovery of the S&P 500 on May 13, therefore, had a positive impact on investors’ sentiment and promoted price gains in Bitcoin and Ethereum.
Bitcoin, Ethereum bounce in response to recovery in stocks
The US stock markets started its recovery on Friday, with Bitcoin price responding to the rise in S&P 500.
Bitcoin and Ethereum prices are up 4% and 6% on the day The recovery in cryptocurrencies has been fueled by the positive sentiment among investors amid the rise in stock indexes and a trend reversal in the assets.
Michäel van de Poppe, a crypto analyst and trader, tweeted in response to the BTC reaction to the advance in US stock markets,
This is going to be a very decent weekly candle on the U.S. stock markets if we close like this. #Bitcoin also reaction in a positive manner.
— Michaël van de Poppe (@CryptoMichNL) May 13, 2022
@crypto_birb, a leading analyst, believes that the chances of Bitcoin hitting a bottom are high, since the BTC price chart reveals patterns that started breaking to the upside consequently. The analyst believes a trend reversal in Bitcoin is likely, within the next few months.
Also, worth watching #Bitcoin chart pattern play out pic.twitter.com/DPRf3jDje2
— CRYPTO₿IRB (@crypto_birb) May 13, 2022
Some analysts believe the short-term bounce in stocks is a result of near-term capitulation. They warn that a downward trend may still be firmly in place.
Fawad Razaqzada, a market analyst at City Index, said,
...as we have seen time and time again, stocks have struggled to sustain any recovery attempts as traders have been quick to take profit on rebounds amid a bearish macro back drop — rising interest rates, low growth and high inflation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.