- S&P 500 took another nosedive this week, driving Bitcoin, Ethereum and digital asset prices down.
- Analysts have identified signs of a break in the tight correlation between Bitcoin and S&P 500.
- Analysts believe Bitcoin price could remain sandwiched between two long-term moving averages at $18,846 and $22,836.
A mysterious Bitcoin whale moved a large volume of BTC that was dormant for a decade. Amidst the breaking correlation between Bitcoin and S&P 500, analysts are bearish on BTC price.
Also read: Polkadot eyes double-digit gains, announces 1000x increase in speed
Bitcoin's correlation with S&P 500 on the decline
Analysts at crypto intelligence platform Santiment argue that things were looking up for Bitcoin, Ethereum and cryptocurrencies over the past week. The decline in the S&P 500 drove prices of digital assets lower over the past week, and analysts have identified signs of a break in the tight correlation between the two sectors.
Bitcoin, Ethereum's correlation with S&P500 on the decline
Bitcoin whales move dormant coins after a decade
A mysterious Bitcoin whale moved a large volume of BTC that was lying dormant for a decade. Based on data from the Bitcoin blockchain, long-term holders are moving BTC held dormant for over a decade during the ongoing bear market. Typically, the movement of large volumes of dormant Bitcoin is associated with a trend reversal in the asset.
In the past week, nearly $10 million in dormant Bitcoin was moved. Philip Swift, the creator of Lookintobitcoin, notes that a movement of 510.65 Bitcoin started in a prolonged bear market.
The asset's cycle low is slightly above the $18,000 level.
Analysts believe Bitcoin price could remain sandwiched between two moving averages
RektCapital, a pseudonymous crypto analyst and trader, argues that Bitcoin has rebounded from green support while not actually touching the 300-day MA. The asset continues to be sandwiched between these two long-term moving averages, 300-day MA at $18,646 and 200-day MA at $22,836.
BTC-USD price chart
CryptoCapo, a crypto trader and analyst, remains opposed to the idea of a rally in Bitcoin price. The analyst believes a quick fakeout to $20,500 is likely, however, Bitcoin could witness a correction soon after.
Regarding $BTC and the rest of the market, a quick scam pump to 20500 is likely, but I wouldn't be bullish.
— il Capo Of Crypto (@CryptoCapo_) September 27, 2022
This is just the test
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
Shiba Inu eyes positive returns in April as SHIB price inches towards $0.000015
Shiba Inu's on-chain metrics reveal robust adoption, as addresses with balances surge to 1.4 million. Shiba Inu's returns stand at a solid 14.4% so far in April, poised to snap a three-month bearish trend from earlier this year.
AI tokens TAO, FET, AI16Z surge despite NVIDIA excluding crypto-related projects from its Inception program
AI tokens, including Bittensor and Artificial Superintelligence Alliance, climbed this week, with ai16z still extending gains at the time of writing on Friday. The uptick in prices of AI tokens reflects a broader bullish sentiment across the cryptocurrency market.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week. This week’s rally was supported by strong institutional demand, as US spot ETFs recorded a total inflow of $2.68 billion until Thursday.
XRP price could renew 25% breakout bid on surging institutional and retail adoption
Ripple price consolidates, trading at $2.18 at the time of writing on Friday, following mid-week gains to $2.30. The rejection from this weekly high led to the price of XRP dropping to the previous day’s low at $2.11, followed by a minor reversal.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.