Bitcoin can hit $40K before BTC price sees ‘harsh correction’ — analyst

Bitcoin (BTC) faced selling pressure on the Feb. 21 Wall Street open as US stock markets opened lower.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

BTC Price Falls Amid US Stocks

Data from Cryptooshala Markets Pro and trade view showed BTC/USD falling to daily lows of $24,324 on Bitstamp.

Bearish signals were already in place for the pair after it saw a quick rejection during its latest attempt to flip $25,000 in support.

Amid suspicions of whale movements on exchanges, monitoring resource Material Indicators concluded that the 200-week moving average (MA) at $25,100 should be support for Bitcoin to change its long-term trend.

“IMHO, until we see full candles above 200 WMA, this is still a distribution on a bear market rally, and with a supply wall above $24K, selling short from this level has about the same short-term risk as long,” he wrote. he partially. comments in my latest twitter update.

The attached Binance order book chart showed that liquidity approached the spot price ahead of the Wall Street opening.

BTC/USD order book data (Binance). Source: Essential Indicators/Twitter.

Caleb Franzen, senior market analyst at Cubic Analytics, meanwhile gave a bearish outlook for the S&P 500, in particular as the performance of risky assets could still weigh on the cryptocurrency.

“The S&P 500 is tearing lower, trading well below my $4,080 line in the sand,” he said. summarize next to the schedule.

“Likely a retest of the 200-day moving average cloud, which will be a vital support level.”

Annotated S&P 500 chart. Source: Caleb Franzen/Twitter

At the time of writing, the S&P 500 is down 1.3% and the Nasdaq Composite is down 1.7%.

The US Dollar Index (DXY), despite being broadly inversely correlated with equities and cryptocurrencies, also suffered at the open, dropping to 103.77 before recovering.

US dollar index (DXY) 1-hour candlestick chart. Source: Trading View

“Higher highs and lows of the dollar held for much of February at 103.82 as support for DXY, current high-low,” part of trader and strategist James Stanley comment. read.

Stanley also cited the Federal Reserve Open Market Committee (FOMC) minutes as a potential market catalyst. The minutes, due on February 22, reflect the February FOMC meeting, as a result of which the Fed raised its key interest rate by 25 basis points.

BTC Price Correction ‘Relatively Shallow’

Meanwhile, taking an optimistic short-term view, Cryptooshala contributor Mikael van de Poppe, CEO and founder of trading firm Eight, was confident that the current drop would be temporary.

Bitcoin active despite 50% rise in BTC price

“Markets are correcting, which is great for people who are looking for entry points. We can drop a little more from here before we turn around. A week of consolidation before continuing,” he said. said Followers on Twitter.

“Tomorrow the FOMC minutes too. Remember, in terms of investment, bitcoin is still very cheap.”

Chart analysis from Van de Poppe showed that BTC price is operating in a narrowing wedge design with a key support area below, extending to $22,500.

The day before, his long-term outlook was for higher highs before a more substantial correction, which could still bring Bitcoin back to $20,000 nonetheless.

“Corrections remain relatively shallow. I think we will continue moving towards $35-40k before we have a sharp correction, maybe even $20-25k. Maximize profits, start distributing in USD, the higher we go, buy on corrections in the second half of 2023,” he said. wrote.

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.

Credit :

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker