The S&P 500 just broke a critical resistance; here's what this could mean for Bitcoin

Despite the global economy being virtually frozen, the S&P 500 and all other benchmark stock indices have been able to rally today, smashing through critical technical levels and potentially creating shockwaves that boost Bitcoin.

This rally has allowed the S&P 500 to surmount two key moving averages that were previously suppressing its price action, leading some analysts to believe that it will see further upside in the mid-term.

Stock market rallies higher as S&P 500 breaks 200-day moving average.

At the time of writing, the S&P 500 is trading up just under 2 percent at its current price of 3,010.

Today's upswing has allowed the S&P 500 to surmount its 100-day and 200-day moving averages, which had both previously been strong resistance levels.

Image Courtesy of Josh RagerHere's what this could mean for Bitcoin.

Many investors have been noting that Bitcoin's swift rebound from its mid-March lows of $3,800 has confirmed its status as a "Safe haven" asset.

Despite this, it is important to note that this recovery has come about in tandem with that seen by the S&P 500 and the aggregated equities market.

The below chart from the analytics platform Skew shows that the two assets have continued seeing a striking correlation - with Bitcoin's recovery simply being more magnified than that of the stock market.

If the S&P 500's break above its 200-day moving average sparks a short-term uptrend, this could bolster where Bitcoin heads next.