Bitcoin price faces important moving average settlement 3 weeks after breakout
Bitcoin (BTC) saw no relief at the February 10 Wall Street open as US stocks fell further.
“All eyes” on the 200-day moving average
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it tracked sideways after a volatile 24 hours of trading.
Existing market weakness was compounded by an announcement from US regulators regarding Ethereum (ETH) staking, with major crypto exchange Kraken forced to suspend staking operations and pay a $30 million fine.
Bitcoin fell to three-week lows as a result, with traders eyeing potential tests of $20,000 and even $19,000 to come.
On the day, stocks offered little comfort to traders of risk assets, with the S&P 500 opening lower to cross a significant line in the sand left over from late last year.
US dollar strength also took time, with a hopeful response from investment resource Game of Trades looking at resistance it may not be able to overcome.
“The USD has been rejected from its macro uptrend line which has now turned to resistance. However, confirmation is key,” it in summary on Twitter.
Scott Melker, known as “The Wolf Of All Streets”, meanwhile, saw reason for optimism on 4-hour time frames when it came to Bitcoin. A comeback could still materialize if it was accompanied by a reversal in the Relative Strength Index (RSI) values.
“This looks ripe for a bounce. RSI oversold with potential bullish divergence,” he told Twitter followers in a recent update.
“Have to wait until the next candle close and see if we get an ‘elbow up’ on the RSI. Testing the 200 MA for the first time since January 6th. $21,646 is also key support, right where the price jumped.”“
An accompanying chart showed the spot price’s proximity to the aforementioned 200-day moving average (MA). This remains a key trendline that Bitcoin has only recently recovered after trading below it since late 2021.
“All eyes on Bitcoin’s 200-day moving average cloud,” Caleb Franzen, senior market analyst at Cubic Analytics, continued on the subject.
Analyst predicts 2021-style energy price rise
Alasdair Macleod, head of research at precious metals investment firm Goldmoney, had one more shock in store.
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In his latest research paper published today, Macleod warned that macroeconomic conditions were apt to repeat behavior from a year earlier, at the start of the conflict between Russia and Ukraine.
This will specifically involve a reversal of the raw material and energy price increases which are still being felt by consumers – but also a bull run for gold.
“This time last year, gold began a rapid rally to $2,070 and oil traded up from $85 to $120 as Russia attacked,” he wrote.
“It’s incredible that markets are ignoring the very clear signals that the conditions that sent commodity and energy prices soaring last February are in place to happen again.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
