The BTC price chart is heading down during the day, but the strength is still there after the short term, says Michaël van de Poppe.
Bitcoin
BTC
tickers down
26,451 dollars
Faced with selling pressure on February 21, Wall Street opened as the United States stock market opened lower.
BTC price falls with US stocks
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD falling to daily lows of $24,324 on Bitstamp.
Bearish signals are already in place for the pair after a quick bounce during a last-ditch effort to dump $25,000 on support.
Amid doubts about the stock market’s whale movement, resource tracker Indicator Materials has concluded that the 200-week moving average (MA) of $25,100 is needed as support for Bitcoin to reverse its long-term trend.
“IMO, until we see a full candle above the 200 WMA, this is still a distribution in a bear market recovery, and with a supply wall above $24k, a short-term pullback from this level has about as much short-term risk as a long,” he said. partially written. from the comments on his latest Twitter update.
The accompanying chart of Binance’s order book shows liquidity closer to spot prices before the Wall Street open.
Caleb Franzen, senior market analyst at Cubic Analytics, meanwhile, has a downbeat outlook for the S&P 500 in particular, with the performance of risk assets still responsible for the impact on crypto.
“The S&P 500 is falling, trading firmly below my $4,080 line in the sand,” he summarized alongside the day’s chart.
“A retest of the 200-day moving average cloud is likely, which will be an important support level.”
The S&P 500 is down 1.3% at the time of writing, while the Nasdaq Composite Index is 1.7% lower.
The US Dollar Index (DXY), despite being broadly inversely correlated with stocks and crypto, also took a hit at the open, falling to 103.77 before rebounding.
“USD highs and lows held through much of February 103.82 as support in DXY, now high-low,” is part of the commentary from trader and statesman James Stanley.
Stanley further highlighted the minutes of the Federal Open Market Committee (FOMC) as a potential market catalyst. The minutes due to be released on February 22 reflect the FOMC meeting in February, as a result of which the Fed raised its key interest rate by 25 basis points.
BTC price correction “relatively shallow”
Meanwhile, adopting an optimistic short-term view, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, is confident that the current downturn will be temporary.
Related: Bitcoin Actively Addresses Analysts’ ‘Concerns’ Despite 50% BTC Price Surge.
“Market correction, which is good for those looking for an entry point. May go down a little more from here before we bounce back. A week of consolidation before resuming,” he told his Twitter followers.
“FOMC minutes also tomorrow. Remember, invest wisely, still super cheap for Bitcoin.
Chart analysis from van de Poppe shows BTC price action in a narrowing wedge construction, with a key area of lower support extending to $22,500.
A day earlier, his long-term forecast called for higher levels before a major correction, which is still apt to bring Bitcoin back to $20,000.
“The correction is still relatively shallow. I think we will continue to run towards $35-40k before we get a rough correction, maybe even $20-25k. Maximize profits, start allocating to the higher USDT we are coming in, buy the correction in the second half 2023”, write.
