Bitcoin (BTC) saw no relief at the Wall Street open on February 10 as US stocks fell further.
“All eyes” on the 200-day moving averages
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it moved sideways after a volatile 24-hour trade.
Existing market weakness was compounded by an announcement from US regulators regarding the staking of Ethereum (ETH), with major crypto exchange Kraken forced to suspend its staking operations and pay a $30 million fine.
As a result, Bitcoin fell to three-week lows, with traders eyeing possible retests of $20,000 and even $19,000 to come.
Stocks offered little reassurance to risk-on traders on the day, with the S&P 500 opening lower to cross a significant line in the sand left over from late last year.
S&P 500 $SPX Gaps below 4,080 (December 2022 daily close high): pic.twitter.com/C2CpD7YpmP
—Caleb Franzen (@CalebFranzen) February 10, 2023
US dollar strength has also bided its time, with a hopeful take on investment research resource Game of Trades eyeing resistance it may not break.
“The USD has been rejected from its macro uptrend line which has now turned into resistance. However, confirmation is key,” he said. summarized On twitter.
Meanwhile, Scott Melker, known as “The Wolf of All Streets,” saw reason for optimism in 4-hour timeframes when it came to Bitcoin. A comeback could still materialize if accompanied by a rally in RSI values.
“This looks ripe for a bounce. RSI oversold with potential bullish divergence,” he said. said Twitter followers in a new update.
“Need to wait until the close of the next candle and see if we get an ‘elbow up’ on the RSI. Testing 200 MA for the first time since Jan 6. $21,646 is also a key support, exactly where the price bounced .“
An accompanying chart showed the proximity of the spot price to the aforementioned 200-day moving average (MA). This remains a key trend line that Bitcoin recently rallied after trading below it since late 2021.
“All eyes on Bitcoin’s cloud 200-day moving average,” Caleb Franzen, Senior Market Analyst at Cubic Analytics, continued in the subject.
Analyst Predicts 2021-Style Power Price Rise
Taking a longer-term view, Alasdair Macleod, head of research at precious metals investment firm Goldmoney, had another surprise in store.
Related: Arthur Hayes bets on Bitcoin, altcoin rises in H1 2023 when he buys BTC
in his last research piece Published that day, Macleod warned that macroeconomic conditions could repeat the behavior of the previous year, at the beginning of the conflict between Russia and Ukraine.
This would specifically imply a repeat of the commodity and energy price increases still being felt by consumers, but also a bull run for gold.
“At this time last year gold started to skyrocket to $2070 and oil rose from $85 to $120 when Russia attacked,” he wrote.
“It is surprising that markets are ignoring very clear signs that the conditions that led to soaring commodity and energy prices last February are in place to happen again.”
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
