In this article, Be[in]Crypto takes a look at the price movement of Bitcoin (BTC), the dollar index (DXY), and the S&P 500 (SPX) to determine if they correlate with each other.
SPX has been falling since reaching an all-time high of $4,818 on Jan 4. The downward movement led to a low of $4,114 on Feb 24.
Afterward, the index bounced and broke out from a descending resistance line on March 17. This upward movement led to a high of $4,637 on March 29.
SPX has been falling since and is potentially returning to the $4,300 area once more. The area is expected to provide support.
Correlation to BTC
Market analyst @Incomesharks tweeted a chart of SPX, suggesting that its drop is responsible for the drop in BTC.
When comparing the SPX (green) movement to that of BTC (orange), it is visible that they are very similar, with the exception that the BTC movement has transpired at a much larger magnitude.
As seen by the correlation coefficient…