The S&P 500 (SPX) started the day in green and rallied hard which gave Bitcoin bulls the opportunity to push the price past $8.8k. At the time of this recording, we are already seeing BTC/USD hold its ground above the $8.8k level. It has effectively climbed past the 200-day moving average and is now holding its ground above it. As long as it remains above it, there is a good chance that we might see it rally towards $9,200 in the near future before it declines further. The majority of retail bears are surprised by this but in our analyses, we have been talking about a relief rally in the S&P 500 (SPX) and therefore in the cryptocurrency market the day that major drop happened.
The situation at present remains uncertain. The S&P 500 (SPX) has rallied past the 200-day moving average and even closed above it but the Dow Jones Industrial Average (DJI) has yet to do that. The cryptocurrency market has reacted to this and once again established the correlation between the stock and crypto markets that we keep talking about and that a lot of retail traders deny. ETH/USD continues to trade below $233 and remains vulnerable but as long as it remains above the 100 EMA on the 12H time frame, there is hope that it could rally further. If it declines below that, all bets are off and we can expect the altcoin market to decline sharply.
EUR/USD has faced a rejection at the 61.8% fib level but it has effectively closed above the 200-day moving average. So, the situation is uncertain in the forex market as well. We have to see the price effectively break either to the upside or to the downside to establish a direction. It appears that markets are focused on Super Tuesday as the major catalyst that could induce major changes in the financial markets in the days ahead. This is a big event today that Wall Street has been waiting for a long time. The results of Super Tuesday are going to have major implications.
Most financial markets at the moment are moving in tandem given the uncertainty. WTI Crude Oil (USOIL) has also made a move to the upside after the recent bullish move in the stock market. The cryptocurrency market could easily rally further if BTC/USD rallies towards the 200-day moving average. However, it is very important to realize that all such events will most likely be short-lived and the fate of Bitcoin and other cryptocurrencies will depend on which way the stock, forex and bond market swings in the days and weeks ahead. For now, as long as Bitcoin remains above the 200-day moving average, there is no reason to be bearish on the market just yet.