SPX and US30 relation to Bitcoin – Part 1

Since the beginning of 2018 and we are showing more and more of confirmations that bitcoin is not moving alone, but Bitcoin became part of the global financial markets. which means that Bitcoin will be affected by the trade war, financial crises and all other indicators of healthy and danger trade. On this sequence of reports, we will connect everything to learn how Bitcoin will react; we will start with US30 ( Dow Jones ) and SPX ( S&P500 ):

Dow Jones – US30 

Dow Jones had been a rebound from the low of 6th of August after the aggressive decline

  • Donald Trump promised to add an extra 10% tax to 300 Billion USD imported Chinese products
  • FED was a bit bullish on rate decision statement.

Above 2 reasons made the market unstable for a week, but seems to be calm now based on US30 chart.

 

US30 - Dow Jones
US30

SPX or S&P500

S&P500 SPX  had exact move of Dow Jones US30 and it collapsed due to the same reasons above.

But both S&P500 and Dow Jones have been closed on Friday 9th of Aug above moving average of 100 days.

One more common condition; both US30 and SPX had been closed above the critical daily trend line.

SPX - S&P500
SPX – S&P500

Conclusion: both S&P500 and Dow Jones are bullish and can create a new high.
But we need to check Gold and VIX to get more indication.

Please click here to continue reading the analysis Gold and VIX relation to Bitcoin

Ahmad Alsheikh Ali
Ahmad Alsheikh Ali
BorseClub Founder, Trading and Development Manger
BC XTB

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