Double Top Warning in S&P 500 Pressures Bitcoin Lower

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Bitcoin is entering a period of uncertainty amid a growing conflict between its fundamental bullish mood and bearish technical setup. The benchmark cryptocurrency has attracted hundreds of millions of dollars worth of capital from corporations that see it as a hedge against a potentially weaker US dollar. At the same time, Bitcoin’s erratic positive correlation with the US stock market–especially the benchmark S&P 500 index–exposes it to an uncertain macro sentiment. Bitcoin-S&P 500 correlation chart. Source: BTCUSD on Coinbase The latest round of worries emerges from a potential “double top” formation in the S&P 500 chart. Veteran investor Mark Mobius highlighted the bearish technical indicator during his latest interview with CNBC’s Squawk Box Europe, calling it dangerous for the US benchmark index altogether. The Real Fuss In retrospect, a Double Top pattern starts appearing when an asset’s price form two consecutive highs separated by a moderate decline in between. Nevertheless,…

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