Bitcoin Stalls Below $59K Amid Split from US Equities as S&P 500 Hits New ATHs

Bitcoin (BTC) continues to struggle underneath the $59,000 price level amid its recent decoupling from U.S. equities, while the S&P 500 hits new all-time highs.

The crypto market recently faced its most bearish period this year, with Bitcoin collapsing to 4-month lows. Amid this downtrend, the global crypto market cap has lost $590 billion since March, currently at a 5-month low of $2.17 trillion. 

This market crash is primarily due to unique selling pressure surrounding Bitcoin rather than macroeconomic conditions. Bolstering this notion is the performance of U.S. equities during this period of sustained crypto market downtrend. Generally, the U.S. stock market is currently witnessing a bullish trend.

US Equities Rally While BTC Underperforms

For instance, the NASDAQ Composite, now trading for $18,656, has increased 7.57% over the past month. Also, the Dow Jones Industrial Average is up 2.34% within the same timeframe. The latest U.S. jobs report, which bolstered hopes of a rate cut, also contributed to recent upsurges in these equities.

Meanwhile, Bitcoin has dropped 13.22% in the past month, confirming its decoupling from the U.S. stock market. The S&P 500, which had historically moved in tandem with BTC in recent times, has experienced a more bullish trend. 

Notably, the stock has continued to record new all-time highs for the past three days amid a bull run. It is now up 3.22% this month, trading for $5,635, while BTC has dropped 6.57% this month. Market analyst Ali Martinez called attention to this divergence in performance, stressing Bitcoin’s recent collapse to $54,000.

It's been over a month since the correlation between #Bitcoin and the S&P 500 broke. While $BTC retraced to $54,000, the S&P 500 hit new all-time highs. Only time will tell if #BTC will catch up! pic.twitter.com/1qyNUuityT

— Ali (@ali_charts) July 11, 2024

Bitcoin dropped to $54,296 on July 8 before staging a mild rebound from this low. Despite the rebound, the premier crypto asset still struggles underneath the $59,000 price level. The selling pressure from the German government selloffs and the Mt. Gox repayments has kept bulls silent. 

Market Analysts Project Bitcoin Recovery

However, despite the sustenance of the selloffs, Bitcoin has defended the $58,000 level, fighting off steeper drops. This resilience has triggered confidence that massive recovery could play out once the sales end. Martinez emphasized that time would tell if BTC can rebound fully and catch up with the S&P 500’s rally.

Pseudonymous market analyst Moustache recently revealed that Bitcoin is on the verge of recording an unprecedented bullish cross. According to him, the Bitcoin 100-week MA is about to cross above the 200-week MA for the first time in history. This golden cross is expected to catalyze a market rally.

#Bitcoin$BTC is about to make the first bullish cross of the MA100/MA200 in it's entire history.👀🔥

Moreover, it is not unusual for Bitcoin to start it's real bull market some time after the halving.

It fits together perfectly tbh. pic.twitter.com/I2mxNlbUiI

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) July 10, 2024

Rekt Capital, another respected analyst, noted that BTC is currently facing resistance at a downward trendline on the daily chart. He confirmed that Bitcoin is now looking to retest the resistance following a pullback witnessed yesterday. In a report two days back, market veteran Michaël van de Poppe touted Bitcoin’s ability to absorb the selling pressure and record a comeback.

Bitcoin currently trades for $58,170, up by a meager 0.69% today. The token has its eyes set on the 20-day SMA ($59,959), pivotal for a flip in momentum to bullish. However, BTC must maintain its defense above the lower Bollinger Band ($55,072) to retain its current position.