Bitcoin (BTC) hit five-day lows on Feb. 22 as the slide in US stocks continued.
Bitcoin analyst: “Hopeing a little lower”
Data from Cointelegraph Markets Pro and TradingView It posted lows of $23,871 on Bitstamp, with S&P 500 futures dipping below 4,000 ahead of the Wall Street open.
Bitcoin bulls had lost ground after the US holiday weekend, which ended with weakness in stocks and a failed attempt to flip $25,000 to support.
For Cointelegraph contributor Michaël van de Poppe, who had expected the correction to be short-lived, it was nonetheless time to wait and see.
“Markets correct as US indices also correct at this point. This means opportunities!” he said Twitter followers on the day.
“I think I’ll be waiting a bit lower in Bitcoin to trigger a long position.”
Van de Poppe had previously forecast a move as high as $40,000 for BTC/USD before a correction set in, which has the potential to take 50% off that high.
Dylan LeClair, a senior analyst at UTXO Management, meanwhile warned that a “crisis” was continuing between US stocks and bonds.
“The rolling of bonds over the last month served as a flashing alarm for a reversal, during which stocks became the most expensive relative to bonds since before the GFC, as 2021 bubble darlings led the rebound,” part of a Twitter thread read.
However, another post noted that Bitcoin’s correlation to stocks was at its lowest level since late 2021, but “remains very positive.”
“I’m quite interested to see how Bitcoin trades during the next risk-on move in the legacy markets… Let’s see,” LeClair added.
Binance “Notorious BID” fills up
Within Bitcoin, attention was still focused on a sizable bid wall, which had managed to move the spot price around the Binance order book in recent days.
Related: Analyst ‘concerns’ active Bitcoin addresses despite 50% gains in BTC price
Dubbed the “notorious BID” by monitoring material resource indicators, the liquidity of the offer was found with the spot price when Bitcoin fell, and the offers were completed.
Changed to CVD Absolute Value to confirm that the Notorious BID wall was filled. #FireCharts pic.twitter.com/4TutHr01Bh
— Material indicators (@MI_Algos) February 22, 2023
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 to drop to $21,500.
“Offer wall filled. Liquidity hasn’t stopped moving on the order book long enough to test. Waiting for it to stabilize,” another post read.
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.
