Bitcoin Holds Steady at $100K Amid S&P 500 Decline and Housing Market Struggles
Key Insights
Does Bitcoin remain resilient as U.S. markets face headwinds?
Indeed, Bitcoin is holding above $100K despite a downturn in Housing Starts and the S&P 500.
What are the implications if Bitcoin's support falters?
A fall below the $100K mark could lead to a decline towards the $90K-$95K range.
Bitcoin is showing resilience even as traditional markets experience tension, potentially indicating a liquidity shift towards cryptocurrencies if the Federal Reserve adopts a dovish stance.
Housing Market Concerns
Housing Starts, which track new privately-owned homes under construction in the U.S., are declining once again. Historically, this has been a reliable indicator of economic slowdowns, with demand waning, financing becoming challenging, and builders pulling back. The trend shows Housing Starts decreasing while the S&P 500 reaches new highs.
This disparity has not been sustained in past cycles. When this pattern arises, it often leads to increased equity volatility as earnings projections are adjusted and market positions shift. The U.S. economy is displaying signs of fatigue, and housing data frequently highlights this first.
Next Indicators
Bitcoin, Ethereum, and Gold recently peaked, but the critical test is just beginning. As the S&P 500 declines, the question is whether Bitcoin will follow suit or maintain its strength. Should Bitcoin hold its higher-low structure while equities correct, it would mirror the dynamic observed in April 2025, signaling relative strength and early market positioning. Conversely, if support fails, the next significant support zone lies closer to $90,000.
Decision Point
Currently, Bitcoin remains above the $100K level, but momentum is weak. The RSI is around 37, indicating the market isn't oversold yet, but conviction is waning. Volume is low, and On-Balance Volume (OBV) is declining, suggesting a lack of aggressive buying. Prices are also below key EMAs, maintaining a bearish short-term bias. The next market move will be crucial; holding this level could allow Bitcoin to establish a base, while losing it could quickly open the path to the lower support range near $95K-$98K.