Can Bitcoin price hold $24K as stock correlation hits lowest since 2021?
Bitcoin (BTC) underperformed to a five-day low on February 22, as a slide in US stocks continued.
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 falling below 4,000 before Wall Street opened.
Bitcoin bulls had lost ground after the US holiday weekend, which ended in weakness across stocks and a failed attempt to turn $25,000 into support.
For Cointelegraph contributor Michaël van de Poppe, who hoped the correction would be short-lived, it was still time to wait and see.
“Correcting markets such as US indices are also correcting at this time. This means opportunity!” he told Twitter followers on the day.
“I think I’ll wait a little lower on Bitcoin to get triggered for a long position.”
Van de Poppe had previously predicted a move to as high as $40,000 for BTC/USD before a correction set in, this has the potential to shave 50% off that high.
Dylan LeClair, senior analyst at UTXO Management, meanwhile, warned that a “crisis” between stocks and US bonds continued to play out.
“Bonds rumblings over the past month acted as a flashing alarm of a reversal, with shares the most expensive relative to bonds since pre-GFC as 2021 bubble favorites led the rally,” part of a Twitter thread read.
Yet another post noted that Bitcoin’s correlation to stocks was at its lowest since late 2021, but “still very positive.”
“I’m quite interested to see how bitcoin trades during the next risk unwind in older markets… Let’s see,” LeClair added
Binance “Notorious BID” fills
Within Bitcoin, attention continued to focus on a significant bid wall, which had managed to move the spot price by moving around the Binance order book in recent days.
Related: Bitcoin Active Addresses ‘Worried Analyst’ Despite 50% BTC Price Gains
Dubbed the “Notorious BID” by monitoring resource material indicators, the bid liquidity met the spot price as Bitcoin fell, and the bids were filled.
With support removed from the order book, Material Indicators added in accompanying comments that it would be “very happy” if BTC/USD were to now continue down to $21,500.
“Bid wall filled. Liquidity hasn’t stopped moving around the order book long enough to analyze. Waiting for it to settle,” another post said.
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.
