Bitcoin attempted a rally towards its critical technical resistance level near $ 10,000 hours after the S&P 500 made up for all of its annual losses on Monday. However, the upward movement of the cryptocurrency ran out of breath just before it hit $ 9,900. Day traders took advantage of the surprising uptrend to make short-term gains and dropped Bitcoin to up to $ 9,567 before midnight on Tuesday. As intraday trading continued, BTC recovered, but tended to flatten within a narrow sideways range.
Bitcoin’s pump-and-dump process was based on a partially similar movement in US stocks. The benchmark index S&P 500 jumped 38.46 points or 1.8 percent to be positive for the year. At one point in March 2020, the index was more than 30 percent below its historic high. Now it is 0.05 percent in the green. Nevertheless, the futures linked to the S&P 500 looked stable ahead of the New York opening bell on Tuesday. They indicated that they would open 0.16 percent below zero and thus achieve erratic parity with the mood on the Bitcoin market.
Top analysts believe US stocks are rising due to a better than expected employment report and the reopening of the economy after a pandemic foreclosure. In the meantime, the Federal Reserve’s open economic policy has also helped stocks, like Bitcoin, to recover from their lows in mid-March.