Bitcoin (BTC) saw weakness at the Wall Street open on January 25 as US stocks fell at the same rate.
BTC Price Faces Strong Resistance
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair heading below $22,500 after failing to break resistance near the five-month highs.
US stocks had a weak start to the session, with the S&P 500 and Nasdaq Composite Index down 1.1% and 1.6%respectively, at the time of writing this article.
Bitcoin bulls ran into trouble trying to reach a liquidity zone above $23,400, which has thus far gone unchallenged and hosted a significant number of short liquidations.
Traders remained on the lookout, hoping for a clearer trading signal to emerge after several days of essentially sideways price action.
“This is what I am looking for in Bitcoin with a corrective wave now, followed by another leg up to my $25,000”, commented Crypto Tony next to an explanatory graphic.
“The invalidation is if we start to collapse from here.”
Cointelegraph contributor Michaël van de Poppe also opted to wait and see the day.
“Patiently waiting for Bitcoin to drop below $22,300 or break and rally to $23,100. In between I don’t see an interesting setup”, said to his Twitter followers.
Some optimistic opinions remained, such as that of Crypto Ed, who foresaw a possible higher low for the BTC/USD pair that would set the stage for new highs.
His colleague Kaleo even He suggested that $30,000 would be Bitcoin’s next target.
Bitcoin Correlation with Gold Rise
A topic of interest beyond price action focused on Bitcoin’s correlation to gold and stocks.
Charles Edwards, CEO of crypto investment firm Capriole, noted that Bitcoin was continuing its historical trend of playing “catch up” with gold.
“There is a relationship between Bitcoin and gold and gold is going up”, wrote.
“When the gold price lags, it’s easier to see. Bitcoin tends to rise 0-6 months after gold and 0-3 months after gold. This gap is approximate and will likely close over time.”
Bitcoin’s correlation to gold was close to 100% on the day.
Instead, Kaleo expected a “decoupling” from the S&P 500, with Bitcoin poised to break out higher.
“BTC broke through HTF resistance dating back to ATH Nov 21 ~ two weeks ago”indicated another tweet.
“It looks as if it is about to continue that trend, as it is currently on the verge of breaking out of a pennant that has been rallying above support.”
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