Bitcoin (BTC) fell to a five-day low on Feb. 22 as the downturn for US stocks continued.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Analyst on Bitcoin: “Waiting for a bit lower”
Data from Cointelegraph Markets Pro and TradingView recorded lows of $23,871 on Bitstamp, with S&P 500 futures slipping below 4,000 ahead of Wall Street’s open.
Bitcoin bulls had lost ground after the US Christmas weekend that ended in weakness across all stocks and a failed attempt to flip $25,000 for support.
Still, it was time to wait for Cointelegraph contributor Michaël van de Poppe, who hoped the correction would be short-lived.
“Markets are correcting as US indices are also correcting at this point. That means opportunities!” He told Twitter followers that day.
“I think I’ll wait for a bit lower in bitcoin to get triggered to go long.”
Van de Poppe had previously forecast a rally as high as $40,000 for BTC/USD before a correction set in, which has the potential to drop 50% from that high.
Dylan LeClair, senior analyst at UTXO Management, meanwhile, warned that a “crisis” between equities and US bonds continues.
“Bonds rolling over the past month served as a flashing alert for a reversal as stocks became their most expensive relative to bonds since pre-GFC, when 2021 bubble favorites led the rally,” part of a Twitter thread read.
Yet another post noted that Bitcoin’s correlation to stocks is at its lowest since late 2021, but “still very positive.”
“I’m very interested in seeing how bitcoin trades in legacy markets during the next risk down move… Let’s see,” LeClair added
Macro Asset vs Bitcoin correlation chart with annotations. Source: Dylan LeClair/Twitter
Binance “Notorious BID” is being filled
Within Bitcoin, attention was still focused on a sizeable bidwall that had managed to move the spot price by shifting in Binance’s order book over the past few days.
Related: Bitcoin Active Turns to “Concern” Analysts Despite 50% BTC Price Gains
Dubbed “Notorious BID” by monitoring resource material indicators, bid liquidity hit spot price head-on as bitcoin collapsed and bids were filled.
With support thus removed from the order book, Material Indicators added in accompanying comments that it would be “very happy” if BTC/USD continued down to $21,500 now.
“The commandment wall has been filled. Liquidity has not stopped moving in the order book long enough to analyze. She’s waiting for her to calm down,” read another post.
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.