21. February 2024

Bitcoin Dips Below $22.5K as Wall Street Weakness Hits Crypto Markets

• Bitcoin BTC saw weakness at the Jan. 25 Wall Street open as United States equities fell in step.
• Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading below $22,500 after failing to crack resistance near five-month highs.
• Traders remained on the fence, hoping that a clearer trading signal would come after several days of essentially sideways price action.

As the US equities market opened on Jan. 25, Bitcoin (BTC) also saw some weakness as the price dipped below $22,500. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD failed to break the resistance at its five-month high. This prompted traders to remain on the fence, hoping for a clearer trading signal after several days of sideways price action.

The S&P 500 and Nasdaq Composite Index were both down 1.1% and 1.6% respectively at the time of writing, signaling further weakness in the US markets. Meanwhile, Bitcoin bulls attempted to push into an area of liquidity above $23,400, only to be met with resistance. Crypto Tony commented on the situation with a chart, noting that a breakdown from the current level would invalidate the bullish outlook.

Michaël van de Poppe, a Cointelegraph contributor, was also opting to wait and see on the day. He tweeted that he was “patiently waiting for Bitcoin to drop beneath $22.3K or breaking and reclaim $23.1K.” In spite of the short-term dip, some remained optimistic and suggested that Bitcoin was still in line for a breakout.

Analysts concluded that the dip in Bitcoin’s price was part of a normal market cycle and that BTC was due for a shake-up against gold, stocks, and other assets. This sentiment was echoed by investors, who could potentially benefit from the expected breakout.

Overall, the current market conditions seem volatile, with a wide range of outcomes possible. It remains to be seen how Bitcoin’s price will react to the current dip, and whether it will be able to recover from the recent losses.