Bitcoin-S&P 500 Correlation Reaches 80%, Impacting Crypto Market Dynamics

Bitcoin is trading around $116,565 after reclaiming the $115,000 mark. The market remains bullish, supported by buying interest and technical positioning, despite consolidation below $120,000.

Key points include:

Correlation between Bitcoin and the S&P 500 has reached 80%
A rally in US equities could propel Bitcoin towards new highs
A downturn in equities may increase Bitcoin's downside volatility

S&P 500 Correlation Strengthens Bitcoin’s Macro Link

Analyst Axel Adler noted that macroeconomic forces are heavily influencing Bitcoin's price. Key factors include:

Interest rate expectations
Liquidity conditions
Risk-on/risk-off sentiment

A sustained recovery in US equities is expected to support Bitcoin, while a downturn could negatively affect the crypto market. Adler warns that the current correlation spike is unlikely to last beyond a few weeks before reverting.

Despite this, increasing crypto adoption in the US enhances long-term bullish prospects, although macroeconomic shifts could quickly change market sentiment.

Bitcoin Price Analysis: Bulls Defend Key Support

Bitcoin is currently holding steady above the $115,724 support level. Recent movements indicate short-term bullish momentum with breaks above key moving averages. Current analysis shows:

Immediate upside target at $122,077
Short-term selling pressure near $117,000
Volume has decreased post-breakout

If BTC maintains levels above $115,724, a breakout toward $118,000–$122,000 is possible. Conversely, rejection could lead to a retest of $115,724 or deeper pullbacks.