Bitcoin (BTC) fell to five-day lows on Feb. 22 as the US stock market slide continued.
Bitcoin analyst: “Waiting a little lower”
Data from Cointelegraph Markets Pro and TradingView hit lows of $23,871 on Bitstamp, and S&P 500 futures dipped below $4,000 ahead of Wall Street open.
Bitcoin bulls had lost ground following the US holiday weekend, which ended with stock market weakness and a failed attempt by BTC to turn $25,000 into support.
For Cointelegraph contributor Michaël van de Poppe, he expected the correction to be short-lived, it was time to wait and see.
“Markets correcting as US indices are also correcting at the moment. This means opportunity!”, said that day to his Twitter followers.
“I think I’ll wait for Bitcoin to drop a bit before opening a long position.”
Van de Poppe had previously forecast a move as high as $40,000 for the BTC/USD pair before a correction occurred, which could cut that high by 50%.
For his part, Dylan LeClair, a senior analyst at UTXO Management, warned that a “crisis” was still brewing between US stocks and bonds.
“Last month, bonds rolled like an intermittent alarm of a trend reversal, during which equities became the most expensive relative to bonds since before the CFG, as 2021 bubble darlings led the way.” rebound,” read part of a thread Twitter.
Another post noted, however, that Bitcoin’s correlation to stocks was at its lowest level since late 2021, but “still very positive.”
“I’m quite interested to see how Bitcoin trades during the next risk off move in the traditional markets… Let’s see,” LeClair added.
Within Bitcoin, attention remained focused on a sizable wall of offers, which had moved the spot price up and down the Binance order book in recent days.
Dubbed the “Notorious BID” by monitoring resource Material Indicators, bid liquidity met spot price head-on when Bitcoin fell, and bids filled.
Switched to Absolute CVD Value to confirm that the Notorious BID wall was filled. #FireCharts pic.twitter.com/4TutHr01Bh
— Material Indicators (@MI_Algos) February 22, 2023
With support thus removed from the order book, Material Indicators added in accompanying comments that it would be “very pleased” if the BTC/USD pair now continued lower to reach $21,500.
“Bid wall filled. Liquidity hasn’t stopped moving through the order book long enough to analyze. Waiting for it to calm down,” read another message.
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