Bitcoin Vs. Stock Market Correlation – Bull Market Not Yet Overheated

It has been just revealed the fact that Bitcoin’s bull market has not overheated yet. Check out the correlation between BTC and the stock market below.

According to Ki Young Ju, the CEO of CryptoQuant, Bitcoin is presently in a bullish trend that still has potential for growth, despite the recent surge that saw the cryptocurrency smashing through $43,000.

Based on an aggregate of key metrics used by CryptoQuant, the CEO tells his 327,800 followers on the social media platform X that Bitcoin has more room for growth.

“We’re in the bull market, thankfully not an overheated bull market.”

According to the analyst, Bitcoin has recently started showing a negative correlation with the S&P 500 (SPX) index.

This suggests that Bitcoin is now acting more as a store of value similar to gold, rather than a tech stock that is linked to market risk.

“Bitcoin entered a negative correlation with the S&P 500. It’s not a tech stock anymore. It’s the digital gold.”

Ju says the official start of the current Bitcoin bull market cycle began back in August when crypto whales started aggressively going long near the $29,000 mark.

“Whale traders opened giga long positions at $29,000.”

According to an analyst, there is another reason to remain optimistic about Bitcoin. Retail investors have not yet returned in significant numbers to the crypto markets with their liquidity.

This means that larger players will not be able to exit their positions efficiently.

The analyst stated that “Retail traders, the exit liquidity, have yet to join the market.” As of writing, Bitcoin is trading at $43,786, which is a 5.2% increase in the last 24 hours.

According to a popular crypto analyst, Bitcoin’s recent surge could be followed by a pullback if it reaches a certain level.

Benjamin Cowen suggests that Bitcoin may experience a dip if it reaches the $48,000 level.

Cowen uses Fibonacci retracement levels, a technical analysis method that helps determine an asset’s support and resistance areas, to make his prediction.