Bitcoin (BTC) bulls faced a setback on Wednesday, with the price dipping below the crucial $60,000 mark. This downturn came after a promising start to the trading session,
where BTC climbed above $66,000. However, a broad sell-off in the US stock market spilled over to the crypto market, stalling Bitcoin’s attempt at a significant rebound.
Key Levels and Technical Signals:
Resistance at $60,000: Overcoming this key resistance level remains a major hurdle for the bulls. A decisive break above $60,000 would be a significant technical victory and could pave the way for further price increases.
Technical Indicators Remain Mixed: While the Relative Strength Index (RSI) indicated oversold territory before the rally, suggesting potential for a bounce, the current price action lacks clear bullish confirmation.
Macroeconomic Jitters and Equity Market Sell-Off:
Upcoming Economic Data: Investor sentiment might be cautious due to the looming release of key US economic data such as the Consumer Price Index (CPI) and Producer Price Index (PPI). Uncertainty surrounding inflation and potential interest rate hikes could keep investors on the sidelines.
Stock Market Correlation: The correlation between Bitcoin and the US stock market appears to be strengthening. The recent sell-off in major US indices like the Nasdaq and S&P 500 likely contributed to the decline in Bitcoin’s price.
The Battle for $60,000 Continues:
The coming days will be crucial for Bitcoin’s short-term trajectory. If the bulls can successfully reclaim the $60,000 level and weather the storm of upcoming economic data, a more sustained rally could be in the cards. However, if the price continues to fall and the correlation with the stock market persists, a renewed decline might be possible.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset