BTC has ample room to revisit $9000 again and most likely rally towards $10000

he S&P 500 Index (SPX) closed last week with a bullish candle, the likes of which we have not seen in the past two years. This is really good news for Bitcoin (BTC) and other cryptocurrencies as it means that the stock market now has room to rally which means BTC/USD has ample room to revisit $9,000 again and most likely rally towards $10,000. The weekly chart for the S&P 500 Index (SPX) shows that the index tested trend line resistance two times before and is now likely to test it once more. This retest will give BTC/USD room to rally because we have seen in the past that when the S&P 500 rises, BTC/USD has room to rise but when it starts to fall, BTC/USD is forced to decline. This is because Bitcoin (BTC) still remains a very high risk asset.

Both the S&P 500 Index (SPX) and Bitcoin (BTC) are due for major declines in the months ahead. However, we will continue to see uncertainty in both markets short term because when something becomes too obvious, market makers like to throw the average investor off with short term uncertainties.

Financial markets work in very predictable ways but so do retail traders. Just as the market repeats the same patterns over and over again, retail traders tend to make the same mistakes over and over again. For instance, we have seen a dozen times just in the past few months that whenever the majority expects something to happen, the opposite usually happens.

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