This week, the price of Bitcoin has remained in a tight range, with support at $90,500 and resistance at $108,500. This trend has been in place since November last year. It is now expected that the price of Bitcoin could follow the S&P 500 to new highs as the Federal Reserve (Fed) nears the end of its quantitative tightening (QT) program.

### Bitcoin price will benefit from the S&P 500's rally

Throughout the year, Bitcoin has been left behind as American stocks have rebounded, with leading indices like the S&P 500 and Nasdaq 100 both hitting new record highs, with the S&P 500 reaching $6,150, while the Nasdaq 100 has seen a surge to $22,130.

The growth spurt comes as investors ignore warnings about new tariffs proposed by Donald Trump, which if enacted would hurt a number of companies, particularly in the construction, pharmaceutical, manufacturing and retail industries.

This adjustment by investors reflects expectations that Trump may use these tariffs as a bargaining chip with major trading partners. The stock market rally could signal that investors are becoming more risk-averse, and could lead some investors to turn to cryptocurrencies like Bitcoin. However, Bitcoin’s correlation with the S&P 500 has been noticeably weaker lately.

### Fed prepares to end Quantitative Tightening

Another move that affected btc and the S&P 500 was the end of the Federal Reserve’s Quantitative Tightening process. This information was disclosed in the minutes of the FOMC meeting on Wednesday, which stated: “With regard to the possibility of significant changes in reserve levels in the coming months, participants indicated that it may be appropriate to stop or delay balance sheet reduction until this event is resolved.”

Quantitative Tightening is the process by which the Fed reduces the amount of money in the economy by shrinking its balance sheet, which is the opposite of increasing quantitative interest rates. The end of QT could be a factor boosting Bitcoin’s price.

### Technical Analysis of BTC

Bitcoin’s weekly chart shows a “Cup and Handle” pattern forming that ended in November last year, with a break of resistance in the form of a strong uptrend. The pattern consists of horizontal resistance and a rounded lower range, with a handle formed between March and November last year.

Bitcoin is currently forming a bullish flag pattern, which is a good sign for growth. Therefore, there is a high chance that the coin will reach $123,000 in the near term. This target is calculated based on the depth of the Cup and is expected to show strength in the market conditions. However, a drop below $90,500 would destroy this bullish view.

Provides a list of frequently asked questions and answers (FAQs)

The chances of Bitcoin price following the S&P 500 index to new highs soon are rising as the Fed pauses QT operations. Meanwhile, strong technical patterns are also driving Bitcoin price, especially the Cup and Handle formation and the bullish flag.

BTC's primary target is $123,000, which is calculated using the depth of the cup and the distance from the top edge.

The market continues to predict that this adjustment may have an impact and cause the price of Bitcoin to start soaring in the near future. We must keep an eye on the stock market movement and the data from the Fed.

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