Bitcoin (BTC) cooled near $19,200 following the opening of Wall Street trading on Oct. 14, as stocks struggled to retain their “bear trap.”
Analyst believes that there are no chances for a rebound in asset prices
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it broke off weekly highs earlier in the day to hover around the $19,300 mark.
The pair experienced intense volatility following the release of US economic data, causing hundreds of millions of dollars in long and short positions to be liquidated.
Now, after the change in scenery and adding almost USD 2,000 in 24 hours, Bitcoin lost momentum again while US stocks plunged into a sea of red numbers.
At time of writing, the S&P 500 was down 1.9%, while the Nasdaq Composite Index was down 5.4%.
Investigating the status quo, Alasdair Macleod, head of research at Goldmoney, pointed to runaway gains in long-term US bonds as a key factor in the pressure being felt across markets.
“U.S. Bond Yields Keep Soaring,” commented.
“As long as this is so, abandon all hope in the values of financial assets.”
The US dollar index, a classic creator of headwinds for risk assets, advanced strongly on the day, topping 113.4 before consolidating.
With the release of the consumer price index (CPI) for September, sentiment was mostly in favor of a further 75 basis point rate hike by the Federal Reserve in November.
According to CME Group’s FedWatch tool, the odds of a less than 50-point rally were just 2.1% as of Oct. 14.
Meanwhile, Macleod noted that even with the strength of the dollar, the world’s major currencies were showing increasing tension, including the japanese yen and, increasingly, the Chinese yuan. The former traded at its lowest level against the US dollar in 34 years.
Experts See BTC Bears Emerging Victorious
Bitcoin analysts continued to favor the downside, regaining control of short-term BTC price action.
The Capo of Crypto reiterated an existing theory that implied a move to near $21,000 before a new bottoming macro sequence occurred.
Closer to home, Jibon, known as Trader_J, saw the current highs get exhausted at or above $20,000, with a drop to the bottom close to $18,000 in possibilities in the next few days.
For Michaël van de Poppe, founder and CEO of trading company Eight Global, the current spot price was a very important level.
“Bitcoin rallied further so the area around $19,400 is important to hold,” concluded.
“It will probably be one for long positions. If it holds eventually we can expect to see the $20,800 and $22,400 levels.”
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