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In current days, the Bitcoin (BTC) worth has hovered across the $52,000 mark, conserving traders on their toes. Meanwhile, the U.S. fairness markets have been surging, with the S&P 500 reaching report highs of 5,000. Year-to-date, the index has already gained 5.54% in 2024, signaling robust efficiency.

S&P 500 Can Rally to 5,200

In a swift turnaround, Goldman Sachs Group Inc. strategists have revised their 2024 goal for the S&P 500 Index after the index surged previous the numerous 5,000 milestone this month. In a current word to purchasers, the staff, led by David Kostin, highlighted elevated revenue estimates as the first driver behind the adjustment.

Kostin now predicts the S&P 500 will climb to 5,200 by the yr’s finish, reflecting a 2% uptick from the mid-December forecast of 5,100. This new goal implies a 3.9% acquire from Friday’s closing worth.

It’s value noting that Kostin’s preliminary projection in November 2023 had the S&P 500 reaching 4,700 by the tip of this yr, 2024. Goldman’s bullish stance, with a 5,200 worth goal for the S&P 500 in 2024, positions it among the many most optimistic on Wall Street. Other market analysts like Tom Lee of Fundstrat Global Advisors and Oppenheimer Asset Management chief strategist John Stoltzfus, have shared an identical year-end outlook.

Will the Bitcoin (BTC) Price Follow?

Bitcoin and the S&P 500 have maintained a detailed and symbiotic relationship up to now. After Bitcoin’s robust rally final yr in This autumn 2023, the Bitcoin worth has been largely catching up to it.

As the BTC worth holds above the important thing help of $52,000, the derivatives knowledge hints at additional bullish worth motion. The chart under depicts a notable surge in Bitcoin open curiosity, reaching a brand new three-year peak of $22.5 billion on Feb 18, marking a considerable $1.12 billion improve from the earlier closing steadiness on Friday, Feb 16.

What’s notably intriguing is that this determine has persistently remained above the $20 billion threshold for 3 consecutive buying and selling days, indicating a sustained bullish sentiment amongst traders.

This improvement means that regardless of Bitcoin ETFs concluding buying and selling on Friday, speculative merchants have reaffirmed their confidence available in the market by reinforcing their positions, anticipating additional upward momentum in BTC worth within the days forward.

Furthermore, it’s noteworthy that the final time Bitcoin open curiosity surpassed the $22.5 billion mark was in April 2021, coinciding with Bitcoin buying and selling above $60,300.

The Possible Downside

The historic accumulation development reveals a formidable impediment for BTC, because it encounters robust resistance across the $53,200 threshold. Analysis from IntoTheBlock’s in/out of the cash knowledge signifies that 532,050 addresses secured 294,890 BTC on the peak worth of $53,256.

It’s value noting that many of those traders have been holding at a loss since December 2021. As BTC approaches its break-even worth, there’s a chance that they could decide to exit their positions.

However, if the bulls handle to surpass the $53,000 sell-wall, it may ignite a wave of strong bullish momentum, probably paving the best way for a retest of the $60,000 territory.

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Bhushan is a FinTech fanatic and holds a very good aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and generally discover his culinary expertise.

The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.