Bitcoin Price Hits 2-Week Low Amid Warning $22.5K Loss Means Another Plunge
Bitcoin (BTC) remained lower at the February 9 Wall Street open as a series of local lows raised bets on a more severe fall.
Trader: ‘Something feels off’ about BTC strength
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it traded around $22,700 on Bitstamp.
The pair had dipped to $22,378 earlier in the day, marking its lowest level since January 25 and a strengthening of $22,400 as an important zone to watch.
“We lost the swing low at $22,500 followed by a bounce. I would look for the bears to escalate the fall once we lose the low,” popular trader Crypto Tony in summary in part of the Twitter coverage.
Co-trades Crypto Chase as well forecast that Bitcoin was “More likely to go lower if 22.3k is marked.”
In a Update to analysis from February 8, fellow Twitter account TraderSZ showed Bitcoin falling below $23,000, which he had warned would mean “moving hard lower.”
“BTC – clean break below dotted line, then I think we’re going down hard. Extension phase very soon,” he wrote at the time.
“There is still support for now, but it’s not something that feels off. I am happy to catch something above the Jan high if the market tears higher. Gut feeling says lower first.”
US stocks were marginally higher at the open, while the US Dollar Index (DXY) saw a drop on the day, falling back below the 103 mark.
“The dollar looks washed out,” trader and podcast host Scott Melker, known as “The Wolf of All Streets,” reactedand argues that DXY weakness could continue to benefit risk assets.
“Classic retest of strong support as resistance at 103.82. Also starting to look like a potential head and shoulders top. Lots of signs that this little bull run will continue.”
Sellers cement resistance at $22,800
Today’s US macroeconomic data, meanwhile, had little noticeable impact on the crypto markets.
Related: Arthur Hayes bets on Bitcoin, altcoin to rise in H1 2023 as he buys BTC
This came in the form of jobless claims, which at 196,000 approached a one-year high and beat expectations by 6,000 – the “hot” results analysis argued was hoped for by the Federal Reserve.
Weaker employment data supports the idea that restrictive economic conditions are working, and a reversal could thus be on the cards earlier.
“Jobless claims 196,000, but four-week average still trends toward historic lows,” CNBC host Carl Quintanilla additionally noted.
The week before, blockbuster jobs data had captured the lowest US unemployment rate since the late 1960s.
Immediately before the report is issued, the composition of the BTC/USD order book on Binance knew resistance strengthening at $22,800.
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