Bitcoin Gains Momentum as S&P 500 Recaptures 200-Day Moving Average

Technical signals in both equities and crypto point to a potential resurgence in bullish sentiment.

The S&P 500 climbed 1.7% on Monday, extending last week’s rally and reclaiming its 200-day moving average (200 DMA) after a correction that saw a nearly 10% decline in recent months. This moving average, calculated from the past 200 days’ closing prices, serves as a widely watched indicator of overall market direction.

Historically, when the S&P 500 moves above its 200 DMA, it indicates renewed investor confidence and potential for further upside. The index previously crossed above this level on March 10 before a brief pullback, resuming its uptrend thereafter.

Bitcoin (BTC) appears to be mirroring this movement, now trading above $88,000 after decisively surpassing its own 200 DMA of $85,046 over the weekend. The next key resistance level sits at $93,245, aligning with the short-term holder realized price, a metric representing the average acquisition cost of recently moved coins. Since these coins are more likely to be spent, this price level could serve as a crucial test of Bitcoin’s strength in the near term.