Michaël van de Poppe stated that the BTC price trend was lower on the day, but there is still strength in the short term. Bitcoin, Wall Street opened under selling pressure on Feb. 21 as U.S. stocks opened lower.
BTC/USD fell to a daily low of $24,324 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView. The pair is already showing a bearish signal after its latest attempt to break above $25,000 for support was swiftly rejected.
With suspicions about the movement of exchange whales, Monitoring Resource Material indicators concluded that the 200-week moving average (MA) of $25,100 needs to be the support for Bitcoin to change its long-term trend.
"IMO, until we see a full candle above the 200 WMA, this is still distribution in a bear market rally, and with a bid wall above $24,000, the short-term risk of shorting from this level is about the same as long," it reads in part Dow's comments in his latest Twitter update.
The accompanying chart of Binance’s order book shows that liquidity was close to the spot price ahead of the Wall Street open. Meanwhile, Caleb Franzen, senior market analyst at Cubic Analytics, has a particularly bearish forecast for the S&P 500, as risky asset performance could still weigh on cryptocurrencies.
“The S&P 500 is opening lower, decisively below my $4,080 line,” he concluded next to the day’s chart. At the time of writing, the S&P 500 was down 1.3%, while the Nasdaq Composite was down 1.7%.
The U.S. dollar index (DXY), despite a broad negative correlation with stocks and cryptocurrencies, also took a hit at the open, falling to 103.77 before rebounding. "As support for the U.S. dollar index, the greenback has held highs and lows at 103.82 for most of February, which is the current high-low," reads some commentary by trader and strategist James Stanley .
Stanley also pointed to the Federal Open Market Committee (FOMC) minutes as a potential market catalyst. The minutes, due on February 22, reflect the February FOMC meeting, which resulted in the Fed raising its key interest rate by 25 basis points.
Meanwhile, Cointelegraph contributor Michaël van de Poppe, CEO and founder of trading firm Eight, took an optimistic short-term view, believing the current dip will be temporary. “Markets correcting, which is great for people who look for entry points. Might go down a bit more from here before we’ll turn around. Week of consolidating before continuation,” he told Twitter followers. Van de Poppe’s chart analysis shows that BTC price action is operating within a narrowing wedge structure, with the key support area below extending to $22,500. A day earlier, his long-term forecast called for higher highs before a more substantial correction, which nonetheless could very well bring Bitcoin back to $20,000.
"The correction is still relatively shallow. I think we'll continue towards $35-40K, maybe even $20-25K before we get into a harsh correction. To maximize profits, the higher we come, start deploying dollars USDT, buy in 2H23 correction," he wrote.
