Bitcoin Due to Upheaval Against Gold, Stocks As BTC Price Drops Below $22.5,000

[ad_1]

Bitcoin (BTC) saw weakness at Wall Street’s open on Jan. 25 as US stocks fell along with it.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBTC price faces strong resistance

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading below $22,500 after failing to break resistance near five-month highs.

US stocks had a weak start to the session, with the S&P 500 and Nasdaq Composite indices down 1.1% and 1.6%, respectively, at the time of writing.

Bitcoin bulls had themselves struggled to break into a liquidity zone above $23,400, which so far has gone unchallenged and harbors a significant number of potential short-term sell-offs.

Traders remained on the close, hoping for a clearer trading signal to come after several days of mostly sideways price action.

That’s what I’m looking for in Bitcoin with a corrective wave now, followed by another step up to my total of $25,000, Crypto Tony commented alongside an explanatory chart.

Invalidation is if we started crashing from here. BTC/USD annotated chart. Source: Crypto Tony/Twitter

Cointelegraph contributor Michal van de Poppe also chose to wait and see the light of day.

Patiently wait for Bitcoin to fall below $22.3,000 or break out and recover $23.1,000. Between the two, I don’t see much of an interesting setup, he told Twitter followers.

Some bullish holds remained, including that of Crypto Ed, which eyed a potential lower for BTC/USD, paving the way for new highs.

Fellow trader Kaleo even suggested that $30,000 would be Bitcoins next target.

Correlation of bitcoin with the surge in gold

A topic of interest beyond price action meanwhile focused on Bitcoin’s correlation to gold and stocks.

Related:Bitcoin faces considerable danger from the Fed in 2023 Lyn Alden

Charles Edwards, CEO of crypto investment firm Capriole, noted that Bitcoin continues its historic trend of playing “catch up” with gold.

There is a relationship between Bitcoin and gold and gold pumps, he wrote.

When you lag the price of gold, it’s easier to see. Bitcoin tends to peak between 0 and 6 months after gold and lowest between 0 and 3 months after gold. This gap is approximate and will likely close over time. BTC/USD against XAU/USD annotated chart. Source: Charles Edwards/Twitter

Bitcoin’s correlation to gold was nearly 100% on the day.

Chart BTC/USD against XAU/USD. Source: Trading View

Conversely, Kaleo was hoping for a decoupling from the S&P 500, with Bitcoin poised to break out higher.

BTC broke above HTF resistance dating back to Nov 21 ATH about two weeks ago, another tweet said.

It looks like it is set to continue this trend as it is currently on the verge of breaking out of a pennant it has accumulated above support. Annotated chart BTC/USD vs S&P 500. Source: Kaleo/Twitter

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

[ad_2]