Many Bitcoin analysts agreed that Bitcoin would stop rallying after its price hits $14,500. The cryptocurrency looked overbought on medium-term timeframes, a technical alert that typically amounts to a downside correction.
But the bearish calls took a backseat on Thursday as Bitcoin extended its upside above $14,500, coming less than a hundred dollars closer to hitting the $15,000-level. A majority of retail traders/investors obviously ignored the “overbought” warnings as hype overtook caution.
Bitcoin was changing hands for as much as $14,945 ahead of the New York opening bell. Its gains, so it appeared, closely followed similar upside moves in the S&P 500 futures, further validating their erratically positive correlation.
Bitcoin-S&P 500 maintains a positive correlation as the former targets $15,000. Source: BTCUSD on TradingView.com
The cryptocurrency and the US benchmark both rose in sync amid the environment of ultralow interest rates and unlimited quantitative easing policies by global central banks. According to the Wall Street Journal, the S&P 500