After a stock rout, Bitcoin (BTC), recovered to $37,000 on February 3, after bulls’ latest attempt at cracking $40,000 resistance.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Stocks: “Extraordinary moves”
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD remained lower after hitting $36,650 briefly on Bitstamp Wednesday.
This weakness came after shock losses in U.S. equity at Wall Street’s open on Wednesday. Major names like PayPal lost large portions of their value following poor performance reports.
Major stocks have seen extraordinary movements post earnings hours this season. Netflix +2% Apple +7% Google+11% Paypal -20% Spotify -23% Liquidity & the Fed’s Put are both gone
Alex Kruger (@krugermacro), February 3, 2022
Meta followed suit in the hours that followed, losing 20% of its share price after data showed it was losing users for the first-time.
Facebook Meta to Zero as Investors Discover the Metaverse Doesn’t Exist
— Cobie (@cobie) February 2, 2022
Bitcoin supporters were quick to make fun of the events. However, the frustrating price action made the area that was designated as a key resistance/support turn look less likely to be broken.
Michael van de Poppe, a Cointelegraph contributor, said that Bitcoin will drop to the $37Kish level if it loses the $37Kish level.
Van de Poppe said that the strength of the U.S. Dollar could be key to understanding future moves in crypto markets. In recent days, the U.S. dollar currency Index (DXY), which crypto has traditionally been inversely related to, fell big.
He told his Twitter followers that it was dependent on the DXY of what they’re going see on crypto markets.
“If the DXY reverses in the coming weeks toward a downwards trend that should be a big accelerator for Bitcoin’s upwards momentum,
U.S. dollar currency indicator (DXY), 1-day candle chart. Source: TradingView
Bitcoin’s losses are surpassed by ltcoins
Altcoins extended their losses, as the top ten cryptocurrencies led By Solana (SOL) fell nearly 10%.
Similar: Price analysis 2/2 BTC, ETH and BNB: ADA, SOL. XRP, LUNA. DOGE. DOT. AVAX
A number of issues on the platform contributed to a downward price pressure. SOL/USD trading was below $100 at the time this article was written.
SOL/USD 1-hour candlechart (FTX). Source: TradingView
Other low performers included Terra (LUNA) and Polkadot(DOT), while Ether was down 3.4% for the day.