S&P500 and Bitcoin Update

S&P 500 – Steady Path Towards All-Time Highs

The S&P 500 is showing strong performance, currently positioned just below its all-time highs.

The fast recovery of a 10% pullback occurred in only 12 trading days. Now the market appears ready for a slight pullback before pushing forward to break through previous highs.

After a possible pullback, I expect the S&P 500 to regain momentum, testing its previous highs and breaking it in the near future. Currently, the weekly trend remains intact, and with the market now sitting above the 10-week moving average (blue), confidence in a sustained bullish trend persists. Even if we see a test to the 10-week moving average—about a 100-point decline—the overall picture remains solid.

While some tech stocks have pulled back slightly, the broader market continues to show healthy rotation between sectors. This rotation is a hallmark of a strong bull market. The key takeaway is that the equity market remains robust, and the broader trend is expected to continue, with no immediate concerns for a significant reversal.

Bitcoin – Awaiting the Next Big Move

Bitcoin has been moving in a relatively range-bound pattern for the last several months, with some volatile fluctuations but no decisive breakout yet.

Bitcoin's recent price activity, while not explosive, is part of a broader consolidation phase. This type of consolidation, after a major run, is normal and often serves as a foundation for the next big upward movement. In the short term, I anticipate Bitcoin will maintain support around the $62k level. However, if it fails to do so, a drop all the way down to $58k wouldn’t be unexpected.

Looking ahead, September could bring the start of a new push higher for Bitcoin. However, it’s possible that we won’t see the full breakout until October or even later in the year. Once Bitcoin does make that decisive move, we could see a strong upward trend, potentially doubling in value over a five- to seven-month period.

For now, patience is key. The broader crypto market is largely in a holding pattern, waiting for Bitcoin to make its next big move. Once that happens, we can expect other cryptocurrencies to follow suit, catching up as the market gains momentum. While it may feel like a waiting game, the groundwork is being laid for the next phase of growth.

I’m starting a new series where I’ll share my honest opinion on altcoins you request. Feel free to comment below with the altcoins you’d like me to review, and I’ll be sure to include them in upcoming posts.

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Written by Timothy Assi, an Elite Popular Investor on eToro.

Not investment advice. eToro is a multi-asset investment platform. Your capital is at risk. For information and educational purposes only.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

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