US stock futures reached all-time highs during the week as the S&P 500 and Nasdaq Composite increased significantly. Experts forecast that this sudden surge in equities could bring about ideal conditions for Bitcoin to overcome its existing resistance at last.
Bitcoin has stayed at $108,000 with constant rejections, but professionals think momentum can shift back into the bulls’ favor soon. S&P 500 futures rose above the 6,145 level, breaking through February’s high and following on from an April rally.
Nasdaq Composite futures also rose to a whopping 20,180 as sentiment improved across tech stocks. The S&P 500 index has risen by more than 23 percent since a low of April 8 as there was a reduction in geopolitical risk and global trade concerns began to dissipate.
Analysts observe that a brighter Middle East picture and reduced inflation pressure have spurred this latest equity optimism. Market players now hope that even the Fed may start reducing rates as early as July. Such a prospect is fueling increased risk-on activity in the markets.
Bitcoin (BTC) Eyes Breakout As Stocks Rally
This wider change of sentiment within finance has breathed fresh optimism into Bitcoin, which continues to be trapped under its resistance point.
A variety of traders anticipate breaking through the level of $109,000 and into a fresh phase of cost discovery if momentum within stocks persists. Increased institutional interest in BTC this quarter has also lifted investor sentiment across the crypto sector.
Major players point to a good setup for BTC breaking above its last high of about $112,000. Regional conflict between Israel and Iran seems dormant, at least in the short term, and many see reduced geopolitical risk fueling digital asset gains.
But Bitcoin has tested this resistance level of $108,000 over and over this past week without success and is now at $107,400. Market analyst Markus Thielen feels covered call strategies utilized by at least a few traders are holding back Bitcoin’s northward movement at this juncture.
Both crypto and equity markets point toward a reversal back toward higher prices, and traders anticipate anxiously as coming economic data like the Fed’s Personal Consumption Expenditures report will arrive with volatility.
