Bitcoin (BTC) faced selling pressure at the opening of Wall Street on February 21 as US stock markets opened lower.
BTC price falls with US stocks
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to daily lows of $24,324 on Bitstamp.
The bearish signals were already there for the pair after seeing quick rejection in his latest attempt to flip $25,000 in support.
Amidst suspicions about the stock market’s whale movement, monitoring resource Material Indicators has concluded that the 200-week moving average (MA) of $25,100 needs to become support for Bitcoin to reverse its long-term trend.
“IMO, until we see full candles above the 200 WMA, this is still distribution in a bear market rally, and with a supply wall above $24,000, shorting from this level has about as much short-term risk as desire,” it wrote in part. comments in your latest Update on Twitter.
An accompanying chart of Binance’s order book showed liquidity approaching the spot price before the Wall Street open.
Meanwhile, Caleb Franzen, chief market analyst at Cubic Analytics, had a bearish forecast for the S&P 500 in particular, with the performance of risky assets still able to affect cryptocurrencies.
“The S&P 500 is moving lower and is trading definitely below my $4,080 in the sand,” he said in summary next to the chart of the day.
“The 200-day moving average of the cloud is likely to be retested, which will be a vital support level.”
The S&P 500 was down 1.3% at the time of writing, while the Nasdaq Composite was down 1.7%.
The US dollar index ( DXY ), while broadly inversely correlated with stocks and cryptocurrencies, also took a hit at the open, falling to 103.77 before rebounding.
“USD higher highs and lows held for most of February at 103.82 as support in DXY, current higher-low,” part of a commentary by trader and statesman James Stanley read.
Additionally, Stanley noted the minutes from the Federal Reserve Open Market Committee (FOMC) as a potential market catalyst. The note due on February 22 reflects the February FOMC meeting, which saw the Fed raise its key interest rate by 25 basis points.
BTC Price Correction ‘Relatively Shallow’
Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, adopted an optimistic short-term outlook, while remaining confident that the current downturn will be temporary.
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“Markets correcting, which is great for people looking for entry points. It could go down from here before we turn around. A week of consolidation before continuing,” he said he said Twitter followers.
“FOMC minutes and tomorrow. Remember investment wise, still super cheap for Bitcoin.”
Van de Poppe’s chart analysis showed that BTC price is operating within a narrowing wedge structure, with a key support area extending below it at $22,500.
The day before, his longer-term forecast called for higher highs before a more significant correction, which is nevertheless still favorable for Bitcoin. back to $20,000.
“Corrections remain relatively shallow. I think we will continue to go towards $35-40k before a hard correction, maybe even to $20-25k. Maximize profits, start allocating to USD, the higher we go, buy at correction in the second half of 2023,” he said he wrote.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.