Bitcoin (BTC) saw no relief at the Wall Street open on February 10 as US stocks fell further.
“All eyes” on the 200-day moving averages
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair after 24 hours of volatility.
Existing weakness in the market was compounded by an announcement from US regulators regarding the staking of Ethereum (ETH), with major cryptocurrency exchange Kraken forced to suspend its staking operations and pay a fine of $30 million.
As a consequence, bitcoin fell to three-week lows, with traders anticipating that it could hit $20,000 and even $19,000 again.
On this day, Stocks offered little comfort to risk-asset traders, with the S&P 500 opening lower to cross a major line in the sand left over from late last year.
S&P 500 $SPX gaps below 4,080 (high daily close Dec.’22): pic.twitter.com/C2CpD7YpmP
—Caleb Franzen (@CalebFranzen) February 10, 2023
US dollar strength has also bided its time, with a hopeful take on investment research resource Game of Trades eyeing resistance it may not break.
“The USD has been rejected from its macro uptrend line which has now turned into resistance. However, confirmation is key.” summarized On twitter.
Scott Melker, known as “The Wolf Of All Streets”, saw reason for optimism in the 4-hour timeframes when it came to Bitcoin.. A comeback could still materialize if accompanied by a rally in RSI values.
“This looks ripe for a bounce. RSI oversold with potential bullish divergence,” said to his Twitter followers in a new update.
“Need to wait until the next candle close and see if we get an ‘elbow up’ on the RSI. Testing the 200 MA for the first time since Jan 6. $21.646 is also key support, exactly where it bounced the price”.
An accompanying chart showed the proximity of the spot price to the aforementioned 200-day MA. This remains a key trend line that Bitcoin recently rallied after trading below it since late 2021.
“All eyes on Bitcoin 200-day moving average cloud”, continuous on the subject Caleb Franzen, Senior Market Analyst at Cubic Analytics.
Analyst Predicts 2021-Style Power Price Rise
With a longer-term vision, Alasdair Macleod, head of research at precious metals investment firm Goldmoney, had another surprise in store.
In his last research article published that same day, Macleod warned that macroeconomic conditions could repeat the behavior of a year earlier, at the start of the conflict between Russia and Ukraine.
This would imply a repeat of the commodity and energy price rises that consumers continue to suffer, but also a bull run for gold.
“This time last year, gold started a rapid rally to $2,070 and oil went from $85 to $120 when Russia attacked,” he wrote.
“It is surprising that markets are ignoring very clear signs that the conditions that led to soaring commodity and energy prices last February are in place to happen again.”
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