Bitcoin (BTC) sank into intraday support on 16 August as concerns emerged over the fate of the United States stock markets.
Strong resistance in US stocks
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD reaching $23,685 on Bitstamp, a low from August 12.
After a terrifying 24-hour calm, the bottom of the day looked like a double top in Wall Street’s set as bullish previous highs of over $25,000.
#B T c Dip is currently taking place as part of a possible technical retest of previous resistance$BTC #crypto #bitcoin https://t.co/quL4gaM2nG pic.twitter.com/zrqzIbCvp2
— Rect Capital (@rektcapital) 16 August 2022
Analyzing the possible consequences, Il Capo, a generally conservative of crypto, warned that the upside is now unlikely given Bitcoin’s inability to break.
“Two options, both recessions,” she began a fresh twitter update Saying in the day
“1) Up to 25400-25500 and then reversal of this moderate TF Bullish trend, straight to new lows. 2) Straight from here to new lows. Bearish confirmation: below 23500 and below 22500. Bullish continuation: above 26k Consolidation.
The argument that BTC/USD would eventually fail to break the resistance was strengthened by the idea that US equities were coming up against their own long-term range.
SPX has reached long term levels here
There may be some profit which is going to be affected naturally $BTC And $ETH Price with potential pullback pic.twitter.com/kLUgbtfz7d
— Rager (@Rager) 16 August 2022
In his own analysis, Jurien Timmer, director of global macros at asset manager Fidelity Investments, additionally flagged a large proportion of S&P 500 stocks above their 50-day moving average.
“The percentage of stocks in the S&P 500 above their 50-day moving average—88%—are astonishing,” he said. commented,
“Is there enough positive momentum to indicate that a new cyclical bull market is underway, or is it simply a bear rally that is now overbought?”
a later post Added that many stocks had relative strength index (RSI) of 70 or higher, something Timmer said spoke to the “momentum” behind the current rally.
Timothy Peterson, investment manager at Cane Island Alternative Advisors, meanwhile had an equally unattainable long-term forecast for the S&P 500.
The expected return for US equities over the next 10 years is 0: the S&P 500 will be ~4,000 in 2032. #inflation-Well Adjust, #stocks Will lose ~30% of its purchasing power. Oh, and it’s a completely different metric than the earlier post. https://t.co/Mz09UVIzT2 pic.twitter.com/L0aOWxz1F3
— Timothy Peterson (@nsquaredmacro) 15 August 2022
The index was down 0.3% at the time of writing, while the Nasdaq Composite Index was trading down 1%.
DoG steals the show on altcoins
On altcoins, it was Dogecoin (DOGE), leading the gains among the otherwise flat top ten cryptocurrencies by market cap.
RELATED: Ethereum Prices $2,000 . But after being rejected, the traders got furious
DOGE/USD on that day crossed $0.09 for the first time since May 18, registering a gain of 86.5% compared to the recent macro bottom of the pair in mid-June.
Conversely, Ether (ETH) was volatile over the past 24 hours, still trading below $1,900.
James Stanley, senior strategist at trading firm DailyFX, was nevertheless bullish on ETH/USD against its June lows, give support at $1,818.
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