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Bitcoin (BTC) faced selling pressure at the opening of Wall Street February 21 as the US stock market opened lower.
BTC price drops lower with US stocks
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD dipping to daily lows of $24,324 on Bitstamp.
Bearish signals are already coming in for the pair after seeing a quick rejection during the latest attempt to flip $25,000 to support.
Amid suspicions over whale moves in exchanges, monitoring resource Material Indicator concluded that the 200-week moving average (MA) of $25,100 is needed to become support for Bitcoin to reverse its long-term trend.
“IMO, until we see a full candle above the 200 WMA, this is still distributed in a bear market rally, and with a bid wall above $24k, shorting from this level is as much short term risk as longing,” he wrote in part of the latest comments. Twitter updates.
The attached chart from Binance’s order book shows liquidity moving close to spot prices prior to Wall Street’s open.
Caleb Franzen, senior market analyst at Cubic Analytics, meanwhile has a bearish prognosis for the S&P 500 in particular, with risk asset performance still likely to weigh on the crypto.
“S&P 500 gapping lower, trading decisively below my $4,080 line in the sand,” he said. summarized next to the chart for the day.
“A retest of the 200-day moving average cloud is likely, which will be a vital support level.”
The S&P 500 is down 1.3% at the time of writing, while the Nasdaq Composite Index is 1.7% lower.
The US dollar index (DXY), although broadly inversely correlated with stocks and cryptos, also took a hit at the open, dropping to 103.77 before rebounding.
“Higher USD highs and lows have held through February 103.82 as support on DXY, higher-low now,” part of comments from trader and strategist James Stanley read.
Stanley also noted the minutes from the Federal Reserve’s Federal Open Market Committee (FOMC) as potential market catalysts. The minutes are due on February 22, mirroring the February FOMC meeting, as a result of which the Fed raised its key interest rate by 25 basis points.
BTC price correction “relatively shallow”
Adopting an optimistic near-term outlook, meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, believes the current downturn will be temporary.
Related: Bitcoin is actively discussing analysts’ ‘concerns’ despite BTC’s 50% rise in price.
“The market is correcting, which is good for people looking for entry points. Maybe down a bit more from here before we turn around. A week of consolidation before continuing,” he said notified Twitter followers.
“Tomorrow’s FOMC minutes as well. Remember, investment-wise, it’s still very cheap for Bitcoin.”
Chart analysis from Van de Poppe shows BTC price action acting in a narrowing wedge construction, with the key area of support below reaching $22,500.
The day before, his long-term forecast called for a higher high before a more substantial correction, but this is still likely to bring Bitcoin back towards $20,000.
“The correction is still relatively shallow. I think we will continue to run towards $35-40K before we have a big correction, maybe even to $20-25K. Maximize profits, start allocating to $USDT the higher we come, buy on the correction in the second half of 2023,” he said write.
The views, thoughts and opinions expressed here are those of the authors themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Source: Cointelegraph.com
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