The correction in the stock market may be over, according to a key technical indicator, which could be good news for Bitcoin (BTC), which has also broken through a similar resistance level.
The S&P 500 rose 1.7% on Monday, extending last week’s gains and having broken through its 200-day moving average (200 DMA) following a correction of up to 10% in the past few months. The 200 DMA is calculated by taking the average of the closing prices over the past 200 trading days and is often used to assess broader market trends and potential turning points.
The S&P 500 last breached the indicator on March 10, and despite a dip shortly thereafter, it resumed its upward trend that has continued to this day.
Bitcoin (BTC) has also risen in tandem, currently trading above $88,000, having decisively broken through its 200-day moving average at $85,046 over the weekend. The next major resistance level is at $93,245, which is equivalent to the short-term holder realized price — the average on-chain acquisition cost of tokens held outside of exchange reserves and transferred over the past 155 days. These tokens are considered most likely to be used at any given time.
