Can Bitcoin price hold $24K as stocks correlation hits lowest since 2021?
Bitcoin (BTC) fell to a five-day low on Feb. 22 as the fall in US stocks continued.
Bitcoin Analyst: ‘Wait a little lower’
Data from Cryptooshala Markets Pro and trade view recorded a low of $23,871 on Bitstamp, with S&P 500 futures falling below 4,000 ahead of the Wall Street open.
Bitcoin bulls lost ground after the US holiday weekend ended with stock weakness and a failed attempt to flip $25,000 into support.
For Cryptooshala contributor Mikael van de Poppe, who had hoped the fix would be short-lived, it’s time to wait and see nonetheless.
“Markets are correcting as the US indices are also correcting at this point. It means opportunities!” He said Twitter followers that day.
“I think I’ll wait until bitcoin drops a little to activate a long position.”
Van de Poppe previously predicted BTC/USD to move to $40,000 before a correction begins that could lower that high by 50%.
Meanwhile, UTXO Management senior analyst Dylan Leclerc warned that the “crisis” between US stocks and bonds continues to play out.
“Last month’s bonds have served as a wake-up call for a reversal in which equities are the most expensive versus bonds since the GFC as 2021 bubble favorites lead the rally.” — part Thread on Twitter read.
However, another post noted that Bitcoin’s correlation with stocks was the lowest since late 2021, but “still very positive.”
“I’m very interested to see how bitcoin trades during the next risk reduction in traditional markets… Let’s see,” LeClair added.
Binance “Notorious BID” fills up
Inside Bitcoin, attention remained focused on a significant order wall that managed to shift the spot price, shifting on Binance’s order book in recent days.
Bitcoin active despite 50% rise in BTC price
Called the “Notorious BID” by monitoring resource material indicators, the liquidity of the offerings matched the spot price when bitcoin fell and bids were filled.
Switched to Absolute CVD to confirm Notorious BID wall is full. #FireCharts pic.twitter.com/4TutHr01Bh
— Material indicators (@MI_Algos) February 22, 2023
After the support was removed from the order book, Material Indicators added in the accompanying comments that they would be “very happy” if BTC/USD continued lower to $21,500.
“The application wall was filled. Liquidity didn’t stop moving around the order book long enough to be analyzed. We are waiting for her to calm down, ”says another message.
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 : cointelegraph.com