Bitcoin price outperforms the S&P 500 this week as both assets approach resistance (April 9 update)

The S&P 500 has posted a strong performance over the past week, erasing most of the losses linked to the dip from the Middle East conflict, while Bitcoin has outperformed. With both markets at, or nearing, notable resistance levels, the question is whether they are entering a new corrective phase.

Rejection next for the S&P 500?

The S&P 500 delivered a strong last seven days, rising by around 7% over the period. After bouncing from the mid-line of its channel, the index has reached firm resistance at 6,800. A rejection from this level could lead the index to pull back, potentially breaking below the channel mid-line, depending in part on how the current Middle East ceasefire develops.

Potential last spike then back to $69K?

Bitcoin has recorded a series of higher highs and higher lows since the end of March, pushing the bulls close to the bear market trendline. However, topping tails above the $71,700 horizontal resistance level suggest the bulls may be losing momentum.

If there is positive news from the Middle East, Bitcoin could follow equities higher. Conversely, if conditions worsen, price could move in the opposite direction.

As it stands, the article suggests a possible quick spike to retest the bear market trendline first, followed by a corrective phase down to at least the $69,000 horizontal support level.

RSI and moving-average signals

The 50-day simple moving average (SMA) on the daily time frame is described as providing support for Bitcoin and positioning to rise again. At the same time, the RSI is portrayed as nearing rejection from a downtrend line, which could eventually be reflected in price action and contribute to a move lower out of a bear-flag structure.

Price direction for the next couple of months

On the weekly time frame, the direction is described as still undecided, though the bears retain the upper hand as long as price remains within the bear flag.

The MACD is also cited as a key factor: the blue indicator line is described as shaping to cross back above the red signal line. The article raises the possibility that this could change by the end of the week if bullish momentum begins to falter.

Overall, the article argues that market direction over the next week or two could set the tone for the following couple of months or more.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.