30s Summary

Bitcoin’s price pattern appears to follow the Nasdaq-to-S&P 500 ratio, a key method of gauging investor risk. After reaching a record high, Bitcoin is now hovering around $90,000—a significant level given it matches Bitcoin’s two peak 2021 valuations. The cryptocurrency’s price has correlated with the Nasdaq-to-S&P 500 ratio since 2017. Lately, when the ratio was high, Bitcoin’s price spiked, but it’s been lowering in line with the ratio’s decrease. If the pattern persists, Bitcoin’s price might stay under $90,000 unless the ratio rises—a possible indicator for those betting on Bitcoin.

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It looks like Bitcoin’s price is following a trending pattern in line with the Nasdaq-to-S&P 500 ratio, a widely used method of assessing investor risk in both the traditional and technology sectors.

Bitcoin’s price rocketed to a record-breaking $93,445 last Wednesday, though it quickly slipped back to floating around the major resistance level of $90,000. This is a point of interest because it follows the line of the two 2021 peaks in Bitcoin’s valuation, which makes it a significant level to keep your eye on.

Interestingly, Bitcoin’s price has shown a solid positive correlation with the Nasdaq-to-S&P 500 ratio since 2017, moving up and down with the measure. This gives us a broader context for understanding the ebbs and flows of Bitcoin’s valuation.

In July, the Nasdaq-to-S&P hit new heights, causing Bitcoin’s price to spike. However, since then, the ratio has fallen back, more in line with Bitcoin’s current hovering around $90,000.

Provided this pattern continues, it’s likely we will see Bitcoin’s price coast under $90,000 for a little while yet. Though, any increase in the Nasdaq-to-S&P ratio could trigger a new surge in Bitcoin’s price. In other words, if you’re bullish on Bitcoin, a rise in the ratio could be your cue to go all in.

Nevertheless, some traders are already banking on Bitcoin breaking out above the $100,000 mark. Keep a close eye on the Nasdaq-to-S&P ratio for clues!