Bitcoin stabilized near $74,000 as traditional markets hit historic levels. The S&P 500 index surpassed 7,000 points for the first time, advancing nearly 11% in 11 sessions. Analysts noted this resilience despite geopolitical uncertainty but warned seasonal trends tied to upcoming U.S. midterm elections could impact the rally. Meanwhile, data showed significant open interest building around the $72,200-$72,400 price range for Bitcoin, suggesting a key support zone. A trader highlighted an unusually weak correlation between Bitcoin and the Nasdaq 100, presenting a potential opportunity for the cryptocurrency.
Bitcoin traded near $74,000 as the S&P 500 reached a new all-time high above 7,000 points. US jobless claims came in at 207,000, marginally below expectations, indicating labor market strength.
Trading resource Mosaic Asset Company noted the S&P’s quick recovery ranks as the fifth fastest following a deep pullback. “The S&P closed firmly above the 7,000 level for the first time in history despite the ongoing uncertainty in the Middle East that sparked a 9% drawdown in the index into late March,” it wrote. Meanwhile, QCP warned that stock rallies historically peak around this time ahead of midterm elections before recovering later in the year.
On-chain data revealed a concentration of trading activity for Bitcoin. Shubh Varma, CEO of crypto data platform Hyblock, stated, “The price bucket at $72.2K – 72.4K has a large amount of open interest that has slowly accumulated.” He added this zone, with nearly $400 million in open interest over a week, could act as potential support.
Trader Michaël van de Poppe pointed to Bitcoin’s relationship with tech stocks. “Bitcoin is about to follow Nasdaq,” he told followers, noting the current period shows the weakest correlation in a decade. He described this divergence as a “tremendous opportunity” for buyers.
