Home CryptocurrencyBitcoin Can Bitcoin Price Hold $24K As Stock Correlation Is At Its Lowest Since 2021?

Can Bitcoin Price Hold $24K As Stock Correlation Is At Its Lowest Since 2021?

by SuperiorInvest

Bitcoin (BTC) fell to five-day lows on February 22 as US stocks continued to slide.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Analyst on Bitcoin: “I’m Waiting for a Little Lower”

Data from Cointelegraph Markets Pro and TradingView hit a low of $23,871 on Bitstamp, with S&P 500 futures falling below 4,000 before the Wall Street open.

Bitcoin bulls lost ground after a US holiday weekend that ended in weakness across stocks and a failed attempt to break through $25,000 of support.

However, for Cointelegraph contributor Michaël van de Poppe, who hoped the correction would be short-lived, it was time to wait and see.

“Correcting markets like US indices are also correcting at this point. That means opportunities!” he he said Twitter followers per day.

“I think I’ll wait for a little bit lower Bitcoin to trigger my long positions.”

Van de Poppe had previously predicted a transition to up to $40,000 for BTC/USD before the correction occurred, this has the potential to reduce such a high by 50%.

Meanwhile, Dylan LeClair, chief analyst at UTXO Management, warned that the “crisis” between stocks and US bonds continues to play out.

“Bonds tumbling over the past month served as a flashing alarm for a reversal that saw equities become the most expensive relative to bonds since the pre-GFC as they led the bubble favorites in 2021,” part of the report. Twitter thread read.

However, another post noted that Bitcoin’s correlation with stocks was the lowest since late 2021, but “still very positive.”

“I’m quite interested to see how Bitcoin trades during the next risk-off in the older markets… We’ll see,” LeClair added

Macro asset vs. bitcoin correlation annotated chart. Source: Dylan LeClair/Twitter

Binance “Notorious BID” will fill up

Within Bitcoin, attention remained focused on the sizable supply wall that managed to move the spot price in recent days by moving past Binance’s order book.

Related: Active Bitcoin Addresses ‘Troublesome’ Analyst Despite 50% Rise in BTC Price

Dubbed “Notorious BID” by tracking the material indicators, the liquidity of the bids met the instant price as Bitcoin fell and the bids were filled.

With support thus removed from the order book, Material Indicators added in accompanying comments that it would be “very happy” if BTC/USD now continued down to $21,500.

“Bid wall has filled up. Liquidity hasn’t stopped moving in the order book long enough to analyze it. Waiting for it to settle,” another post said.

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.

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