- There is debate in the crypto market as to whether or not BTC has established its bottom.
- Traders and investors are turning to the S&P 500 to gauge if BTC will drop further.
- BTC’s price is currently trading above the $20,000 level after a 24-hour rise in price.
One of the main debates taking place in the crypto market is whether or not the crypto market leader, Bitcoin (BTC), has established its price bottom for the current bear market.
When attempting to reach a conclusion around this debate, veteran crypto investors and traders turn to the S&P 500 Index since it is believed that BTC and the S&P 500 are closely correlated. One instance where this correlation can be seen is in the middle of December in 2018 – a time when the crypto market was in a bear market following the meteoric 2017 rally in crypto prices.
Weekly chart for BTC/USDT (Source: CoinMarketCap)
As can be seen in the weekly chart for BTC/USDT above, BTC entered into a bullish rally that persisted until July 2019 where it set a high of $14,000 before retracing a bit and consolidating.
During the middle of December 2018, the S&P 500 Index also saw its trend change from bearish to bullish, albeit after BTC’s trend reversal.
The question on everybody’s mind now is whether or not history will repeat itself as BTC seems to have reached a bottom of $17,500 after rising up to the $19,000 level where it now lingers in a consolidation phase.
According to the crypto market tracking website, CoinMarketCap, the price of the crypto market king is at $20,263.89 after an 8.14% increase in price over the last 24 hours. Over the same day, the price of BTC was able to print a 24-hour high of $20,263.89 and set its daily low at $18,721.29.
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