Bitcoin (BTC) faced selling pressure at the Wall Street open on February 21 as US stock markets opened lower.
BTC Price Falls Lower With US Stocks
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to daily lows of $24,324 on Bitstamp.
Bearish signals were already present for the pair after it saw a quick rejection during its last attempt to flip $25,000 to support.
Amid suspicions about whale movements on exchanges, monitoring resource material indicators concluded that the 200-week moving average (MA) at $25,100 needed to become support for Bitcoin to reverse its long-term trend. .
“In my opinion, until we see full candles above the 200 WMA, this is still a distribution on a bear market rally, and with the supply wall above $24k, short selling from this level is just as risky to short term as expected,” he wrote in part. of comments on his last twitter update.
An accompanying chart from the Binance order book showed liquidity approaching the spot price before the Wall Street open.
Meanwhile, Caleb Franzen, a senior market analyst at Cubic Analytics, had a bearish forecast for the S&P 500 in particular, and risky asset performance could still weigh on cryptocurrencies.
“The S&P 500 is sloping lower, trading decisively below my $4,080 line in the sand,” he said. summarized next to a chart on the day.
“The 200-day moving average 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 Index was down 1.7%.
The US Dollar Index (DXY), despite being largely inversely correlated with stocks and cryptocurrencies, also took a hit at the open, falling to 103.77 before recovering.
“USD higher highs and lows have held for much of February 103.82 support in DXY, current high-low,” part of comment by trader and strategist James Stanley read.
Stanley also pointed to the Federal Reserve’s Federal Open Market Committee (FOMC) minutes as a potential market catalyst. The minutes, due February 22, reflect the February FOMC meeting, as a result of which the Fed raised its key interest rate by 25 basis points.
“Relatively Shallow” BTC Price Corrections
Taking a short-term bullish view, meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, was confident that the current slump would be temporary.
Related: Analyst ‘concerns’ active Bitcoin addresses despite 50% gains in BTC price
“Markets correct, which is great for people looking for entry points. It could go a bit lower from here before we turn around. Consolidation week before continuation,” he said. said Twitter followers.
“FOMC minutes tomorrow as well. Remember, investment-wise, it’s still super cheap for Bitcoin.”
Van de Poppe’s chart analysis showed BTC price action acting within a narrowing wedge construction, with a key area of support below extending to $22,500.
The day before, his longer-term forecast called for higher highs before a more substantial correction, which, however, could still take Bitcoin to $20,000.
“Corrections are still relatively shallow. I think we will continue the run towards $35-40K before we get a severe correction, maybe even $20-25K. Maximize profits, start allocating $USDT the higher we get, buy on the correction in the second half of 2023,” said wrote.
The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
