Bitcoin (BTC), which was $44,500 at Wall Street Open on February 15, with traders adding overnight enthusiasm, passed $44,500
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Slowly, resistance forms
Data from TradingView and Cointelegraph Markets Pro showed that local highs of $44,543 were recorded for Bitcoin/USD on Bitstamp.
After a sudden halt to a multi-day downtrend towards the $40,000 mark, the pair was already up more than 6%.
Cointelegraph reported that events in Canada appeared to be triggering a comeback while news from Russia about possible steps to deescalate tensions at the Ukraine border had not had an impact on crypto markets.
Stocks felt more relaxed, with the S&P 500 rising 1.4% in the first hour.
“Bitcoin has reclaimed its 4HR range that it lost just a few days back,” Rekt Capital, a hopeful investor, said in a Twitter update.
4-hour candle chart with annotated candles for BTC/USD Source: Rekt Capital/ Twitter
He said that Bitcoin was trying to break the 50-week moving mean to turn to support over longer periods of time.
He wrote, “Turn this into support and it would confirm bullish biases for BTC.”
However, not everyone was as confident. Johnny, a popular trading account, demanded a flip at the annual open above $46,000 to prevent waiting to “buy back lower than current levels”.
Buyer power meets stock risk
On-chain data shows that the picture calls for “cautious optimism”, based on buying behaviour, despite macro risks.
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Ecoinometrics’ Twitter analytics account shows that investors large and small made BTC allocations to counter potential pressure on Bitcoin due to falling stocks.
“The whales are purchasing. The small fish are also buying. It wrote that Bitcoin is all well and good.
Analysts noted “exceptionally high” stock correlation in current conditions, increasing the possibility of a deeper Bitcoin price correction if macro policy changes are made.
It added that anything that could smash the SP500 is a huge risk for BTC.
Chart showing the correlation between Bitcoin and other currencies. Source: Ecoinometrics/Twitter