As another panicked tech stock, Bitcoin (BTC), fell at the Wall Street Open on February 2.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin: “Macro FUD drives all”
Data from TradingView and Cointelegraph Markets Pro tracked the BTC/USD’s decline to below $38,000 when Wall Street opened, reversing half of the gains made on February 1.
The pair was trading at $37,600 at the time of writing. Tech stocks also took a beating. The decline was led by PayPal shares, which dropped nearly 25% after it reported missing earnings targets.
Bloomberg data showed that early pandemic gains were wiped out by 70% in the cases of PayPal 52%, Zoom, and Peloton.
Analysts were not impressed by Bitcoin’s latest dip, which took bulls further from critical resistance.
“Market structure is still clearly bearish for me under $39.6K. “I would like daily closes above $40.2K before I feel a bigger rally possible,” TXMC Trades, popular Twitter account summarized the day.
“My base case is still a test at $29K-30K (or lower) before any future price discovery. Macro FUD drives all. HODL and wait.
Cointelegraph reported that not everyone is expecting a immediate downturn, and there may be a retest worth $40,000 for some.
The on-chain data was also encouraging, despite the lingering low price performance. Willy Woo, a statistician, reiterated Wednesday that Bitcoin is in good health.
He stated that price in relation to the on-chain demand from both the speculative as well as the hodl categories of investors is now at peak oversold levels.
“October 2020 was the last time that this happened.” “The COVID crash was the previous time this happened.”
An analysis of derivatives markets showed that funding rates were slightly negative at the time this article was written. William Clemente, a fellow analyst, took the opportunity to remind traders negative rates might not necessarily be shorters “piling in” the market hoping for further decline.
Chart of BTC futures funding rates. Source: Coinglass
Market storms are generally avoided by ltcoins
Altcoins meanwhile remained generally steady with Ether (ETH), the exception out of the major tokens, experiencing a 2.1% drop over the day.
Related: Only 2.43% of the $30T US national debt can be paid by all Bitcoins around the world
The ETH/USD exchange rate was $2,680 at the Wall Street Open, up 1.7% from the previous week.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView
Other top ten cryptocurrency market caps were either flat, or down by a small amount when compared to Bitcoin’s 1.6% drop.
Cointelegraph reported that Bitcoin’s market cap has increased compared to altcoins over the past weeks, reaching a two-month high.
Eileen Wilson –Technology and Energy
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