A prominent crypto trader, whaler and analyst says that Bitcoin (BTC) is about to break above the current trading range as its correlation with the stock market begins to deteriorate. Here is Kaleo’s analysis of the largest cryptocurrency by market cap…
Kaleo compared Bitcoin and SPX
A trader with a cryptocurrency whale, i.e. known to have a large amount of coins on hand According to Kaleo, his 476,000 Twitter followers are watching Bitcoin against the S&P 500 index (SPX), not the USD. Kaleo says that by looking at SPX (BTC/SPX) versus Bitcoin, a trader can see more clearly the price action of BTC and where it might go next. For example, the analyst underlines that BTC/SPX never formed the double top pattern that BTC/USD formed in November 2021, which caught many traders off guard, and uses the following expressions:
BTC and SPX are an interesting watch to watch. couple. The chart is 10x cleaner than BTC/USD, showing clear support and much stronger macro structure (all-time high in October/November) at base ranges above [high] support in 2017.
Last week BTC was uncorrelated with SPX
Last week, Kaleo pointed out that Bitcoin is largely uncorrelated with SPX, that is, the correlation is broken. The analyst noted that this is a rare occurrence after months of trading together, adding, “It is also fun to watch the price action divergence in SPX/BTC today. Bitcoin has basically been trading as an SPX proxy in the latter case, so any performance is always welcome.” it’s fun,” he said.
Trader sees BTC/SPX rising even higher, increasing the likelihood of Bitcoin rallies. According to the analyst, it seems clear that the range in question will be broken at higher levels. On the other hand, Kaleo is also evaluating the possibility of Ethereum (ETH) going up against the S&P 500. As we reported on Kriptokoin.com, BitMEX’s founder Arthur Hayes referred to his latest prediction that ETH will be traded above $10,000 by the end of the year, and asked, “What if Arthur is right?” uses expressions.
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