Warning arrow from S&P 500: Bitcoin is about to fear a "panic sell-off" scenario

In recent days, the S&P 500 index (representing the US stock market) has been sending concerning signals. On the larger time frame, the long-term upward trend remains solid, but in the short term, signs of warning arrows have appeared. Specifically, prices are no longer maintaining a strong upward momentum; instead, they are entering a sideways consolidation phase in the high zone. This is a typical sign of the “distribution” phase—when large investors begin to reduce their positions.

Distribution Signal: When Major Institutions Start Selling Off

As the S&P 500 approaches the upward trendline, prices are strongly rejected and only rise weakly. This movement creates a small oscillation zone called “sideways.” It clearly indicates that market buying power has significantly weakened. When a market cannot continue upward and hovers at the top, the classic next step is a sharp decline to release pressure. The downward arrow in technical analysis is a forecast of this situation.

Domino Effect: Why Bitcoin Gets Pulled Down When US Stocks Struggle

The correlation between the S&P 500 and Bitcoin is not coincidental. In recent years, Bitcoin has developed a very close correlation with risk assets like US stocks. When the stock market turns bearish, a domino effect begins—investors start withdrawing capital from all risk assets. Bitcoin, accordingly, becomes the “prey” of this sell-off wave.

The “risk-off” sentiment will be the arrow piercing through the illusions of optimistic traders. When capital flows out of risk markets, BTC is usually the first to be sold. Therefore, a potential decline in the S&P 500 could serve as a “driver” pushing Bitcoin down to the 73,000-76,000 USDT range, consistent with previous technical forecasts.

Bearish Setup: Opportunity or Warning?

These factors combined create a quite notable “setup” for decline for three main reasons:

• US stocks clearly show distribution signals in the high zone—a classic warning scenario
• The short-term trend is continuously weakening while the long-term trend has not been fully broken
• Bitcoin is highly likely to be “dragged down” as risk-off sentiment dominates the market

Current Data Table

According to the latest data as of 02/02/2026 11:14:21, Bitcoin is trading at $77.51K, down 0.99% in the past 24 hours. The warning arrow from the stock market has already started “falling,” and if history repeats, capital will continue to withdraw from high-risk assets. Investors should prepare for the possibility that Bitcoin may continue to decline in the coming weeks.

In summary, when the US stock market weakens, the crypto market is unlikely to experience strong growth. Instead, a decline may occur sooner or more deeply. The warning arrows are stretched tight, and now is the time for investors to pay close attention.