Bitcoin can hit $40K before BTC price sees 'harsh correction' — analyst

2 years ago

Bitcoin (BTC) faced selling unit astatine the Feb. 21 Wall Street unfastened arsenic United States' banal markets opened down.

BTC terms skids little with US stocks

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to regular lows of $24,324 connected Bitstamp.

Bearish signals were already successful for the brace aft it saw swift rejection during its latest effort to flip $25,000 to support.

Amid suspicions implicit whale movements connected exchanges, monitoring assets Material Indicators concluded that the 200-week moving mean (MA) astatine $25,100 needed to go enactment for Bitcoin to alteration its semipermanent trend.

"IMO, until we spot afloat candles supra the 200 WMA this is inactive organisation successful a carnivore marketplace rally, and with the bid partition supra $24k, shorting from this level has astir arsenic overmuch abbreviated word hazard arsenic longing," it wrote successful portion of comments successful its latest Twitter update.

An accompanying illustration of the Binance bid publication showed liquidity moving person to spot terms anterior to the Wall Street open.

Caleb Franzen, elder marketplace expert astatine Cubic Analytics, meantime had a bearish prognosis for the S&P 500 successful particular, with hazard plus show inactive liable to measurement connected crypto.

"The S&P 500 is gapping lower, trading decisively beneath my $4,080 enactment successful the sand," helium summarized alongside a illustration connected the day.

"A retest of the 200-day moving mean unreality is likely, which volition beryllium a captious enactment level."

The S&P 500 was down 1.3% astatine the clip of writing, portion the Nasdaq Composite Index was 1.7% lower.

The U.S. dollar scale (DXY), contempt being broadly inversely correlated with stocks and crypto, besides took a deed astatine the open, dropping to 103.77 earlier rebounding.

"USD higher highs and lows person held done overmuch of Feb. 103.82 arsenic enactment successful DXY, existent higher-low," portion of commentary from trader and stategist James Stanley read.

Stanley additionally noted the minutes from the Federal Reserve's Federal Open Market Committee (FOMC) arsenic a imaginable marketplace catalyst. Due connected Feb. 22, the minutes bespeak the February FOMC meeting, arsenic a effect of which the Fed raised its cardinal involvement complaint by 25 ground points.

BTC terms corrections "relatively shallow"

Adopting an optimistic short-term view, meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and laminitis of trading steadfast Eight, was assured that the existent dip would beryllium a impermanent one.

"Markets correcting, which is large for radical who look for introduction points. Might spell down a spot much from present earlier we'll crook around. Week of consolidating earlier continuation," helium told Twitter followers.

"FOMC minutes time arsenic well. Remember, concern wise, inactive ace inexpensive for Bitcoin."

Chart investigation from Van de Poppe showed BTC terms enactment acting wrong a narrowing wedge construction, with a cardinal country of enactment beneath stretching to $22,500.

The time prior, his longer-term forecast called for higher highs earlier a much important correction, this nevertheless inactive apt to instrumentality Bitcoin back to $20,000.

"Corrections stay to beryllium comparatively shallow. I deliberation that we'll proceed the tally towards $35-40K earlier we'll person a harsh correction, possibly adjacent to $20-25K. Maximize profits, commencement allocating towards $USDT the higher we come, bargain connected the correction successful 2nd fractional of 2023," helium wrote.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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