The correction in stocks could be over based on a key technical indicator and that might be good news for bitcoin (BTC), which has also breached similar resistance.
Ahead 1.7% on Monday to follow up on last week’s gains, the S&P 500 has moved above its 200-day moving average (200 DMA), after correcting as much as 10% in recent months. This 200 DMA is calculated by taking the mean of the closing prices over the past 200 trading days and is often used to assess broader market trends and potential turning points.
The S&P 500 last crossed that gauge on March 10, and — though declining a bit shortly after — resumed an uptrend which has continued through today.
Bitcoin (BTC) has moved in step, now trading above $88,000 after decisively breaking through its own 200 DMA of $85,046 over the weekend. The next major resistance level is at $93,245, which corresponds to the short-term holder realized price — i.e., the average on-chain acquisition cost of coins held outside exchange reserves and moved within the last 155 days. These coins are considered the most likely to be spent at any given time.
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