World Crypto Global
Bitcoin Lags Behind S&P 500, Signaling Potential Bullish Catch-Up
Bitcoin has managed to record some price gains in the last week following a brutal market sell-off at the start of July which saw the crypto market leader lose 10% of its price on July 5. At the moment, analysts continue to roll out observations and predictions that suggest that Bitcoin may soon pull off a market rebound and perhaps eventually embark on a highly-expected bull run. Related Reading: Institutions Grab Over $5 Billion Bitcoin in a Week: Are They Predicting a Mega Rally? Bitcoins ‘Rare’ Underperformance Hints At Possible Bullish Rebound In an X post on Friday, prominent blockchain analytics company Santiment provided some intriguing insights into Bitcoins recent price behavior. Santiment stated Bitcoin is largely behind the S&P 500 and other equities in relation to price performance, a development which they described as a rare sight over the last three years. As earlier stated, Bitcoin’s current massive price dip can be attributed to a large-scale market sell-off mainly by the German Government who have now completely offloaded their total BTC holdings valued at $2.9 billion. Furthermore, the defunct crypto exchange Mt. Gox which collapsed in 2014, finally began the repayment of a $9 billion debt to creditors in BTC and BCH, the majority of which were expected to be sold, thus a prompting massive selling pressure. While Bitcoin showed some resilience this week gaining by 2.88%, the premier cryptocurrency still trails the positive price performance of the equities market on a larger timeframe. For context, Santiment explains that Bitcoin has declined by 19.4% in the last five weeks while the S&P 500 has recorded a 5.4% gain within that same period. However, as this development has been a rare occurrence in the last three years as both assets usually moved in tandem, Santiment suggests Bitcoin may experience a bullish catch-up period. Related Reading: Bitcoin Price Trajectory Remains Bearish, $49,000 Liquidity Zone Looms As Next Downside Target Bitcoin To Challenge 1.5-Month Downtrend In other news, crypto analyst Rekt Capital has noted that Bitcoin is currently battling to end a downtrend stretching over the last one-and-a-half month. During this period the premier cryptocurrency has lost over 18% of its price. According to Rekt Capital, Bitcoin has attempted to break out of this downtrend multiple times including three times in the last three days. If Bitcoin eventually pulls a trend reversal, the market leader may be set for full price recovery reaching as high as $71,000. At the time of writing Bitcoin trades at $58,170 with a 1.69% gain in the last day. However, this mild price pales in comparison to the comparison which has surged by 30.81% to a price of $5,615 in the last 24 hours. Featured image from The Economic Times, chart from Tradingview.com
