The current market outlook compared to three weeks ago suggests a slight pullback that has been resolved to the upside for the S&P. However, it has not fully resolved yet and a strong open above 5440 is seen as crucial. This level is used as a stop loss on the upside. There has been extremely low volatility in recent weeks, leading some analysts to warn that the pullbacks may be the “calm before the storm.”
However, the founder of Fairlead Strategies maintains that support remains intact and believes the market may experience an upward explosion as the lower volatility cycle dissipates. The increasing correlation between Bitcoin and the Nasdaq 100 indicates that investors are treating both as risk assets. This is observed amid a struggle in Bitcoin’s price since reaching highs of $73k in March and a subsequent easing higher in the Nasdaq 100 since mid-April. Despite Bitcoin’s lack of upside momentum and the divergence with the Nasdaq 100, Fairlead Strategies suggests that both BTC and the stock market could potentially move higher.
They still believe in the current bull market cycle for Bitcoin and equities, but anticipate that the divergence will eventually catch up with the Nasdaq 100 Index. On Monday, Bitcoin was traded at around $65,200 at 12:25 pm ET.