Bitcoin price hits multi-day low as data warns of ‘overbought’ stocks

Bitcoin (BTC) sank to intraday help on Aug. 16 as issues emerged over the destiny of United States inventory markets.

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

U.S. shares face stiff resistance

Knowledge from Cointelegraph Markets Professional and TradingView confirmed BTC/USD hitting $23,685 on Bitstamp, nearing lows from Aug. 12.

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

After an eerily calm 24 hours, draw back set in on the day’s Wall Road open as earlier highs in extra of $25,000 seemed more and more like a double prime.

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

#BTC is dipping proper now as a part of a possible technical retest of earlier resistance$BTC # #Bitcoin

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

— Rekt Capital (@rektcapital) August 16, 2022

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

Analyzing the potential outcomes, a usually conservative Il Capo of warned that upside was now extremely unlikely given Bitcoin’s lack of ability to interrupt out.

Bitcoin Price Hits Multi-day Low As Data Warns Of 'overbought' Stocks

“Two choices, each bearish,” he started a contemporary Twitter replace on the day by saying.

“1) As much as 25400–25500 after which reversal of this medium tf bullish development, straight to new lows. 2) Straight to new lows from right here. Bearish confirmations: beneath 23500 and beneath 22500. Bullish continuation: consolidation above 26ok.”

The argument that BTC/USD would in the end fail to crack resistance was strengthened by the view that U.S. equities had been arising towards long-term ceilings of their very own.

SPX hitting a long-term stage right here

Might be some revenue taking which is of course going to impression $BTC and $ETH value with potential pullback

— Rager (@Rager) August 16, 2022

In his personal evaluation, Jurrien Timmer, director of world macro at asset supervisor Constancy Investments, moreover flagged a big proportion of S&P 500 shares buying and selling above their 50-day transferring averages.

“The share of shares within the S&P 500 buying and selling above their 50-day transferring common—88%—is beautiful,” he commented.

“Does this sign sufficient constructive momentum to point {that a} new cyclical bull market is underway, or is that this merely a bear market that’s now at an overbought excessive?”

A subsequent publish added that many shares had a relative power index (RSI) of 70 or extra, one thing Timmer stated spoke to the “momentum” behind the present .

Timothy Peterson, funding supervisor at Cane Island Various Advisors, in the meantime had an equally unappealing long-term prognosis for the S&P 500.

The anticipated return for US fairness over the following 10 years is 0: the S&P 500 might be ~4,000 in 2032. #Inflation-adjusted, #shares will lose ~30% of their buying energy. Oh, and this can be a fully totally different metric than what was posted earlier than.

— Timothy Peterson (@nsquaredmacro) August 15, 2022

The index was down 0.3% on the day on the time of writing, whereas the Nasdaq Composite Index traded down 1%.

DOG steals the present on altcoins

On altcoins, it was Dogecoin (DOGE) main the features amid an in any other case flat prime ten cryptocurrencies by market cap.

Associated: Merchants flinch after Ethereum value rejects at $2,000

DOGE/USD handed $0.09 for the primary time since Might 18 on the day, marking features of 86.5% versus the pair’s current macro backside in mid-June.

DOGE/USD 1-day candle chart (Binance). Supply: TradingView

Against this, Ether (ETH) was unmoved over the previous 24 hours, nonetheless buying and selling underneath $1,900.

ETH/USD 1-day candle chart (Binance). Supply: TradingView

James Stanley, senior strategist at buying and selling agency DailyFX, was nonetheless bullish on ETH/USD versus its personal June lows, inserting help at $1,818.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer includes danger, it’s best to conduct your individual analysis when making a call.


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