Bitcoin (BTC) went under intraday support on August 16 as concerns about the fate of US equity markets emerged.
US stocks have strong resistance
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair hit $23,685 on Bitstamp, closing in on the August 12 lows.
After a quiet 24 hours, Wall Street’s opening day decline settled, so previous highs above $25,000 looked more like a double top.
— Rekt Capital (@rektcapital) August 16, 2022
BTC is currently falling in a possible new technical test of previous resistance BTC#Crypto #Bitcoin https://t.co/quL4gaM2nG pic.twitter.com/zrqzIbCvp2 — Rekt Capital (@rektcapital) August 16, 2022 .
Analyzing the possible results, conservative Il Capo of Crypto warned that the upside was now very likely due to bitcoin’s inability to break out of the rut.
“Two options, both bearish,” he said. started said in a new Twitter update of the day.
“1) Up to 25400-25500 then reversal of this average upgrade, straight to new lows. 2) Straight to new lower levels from here. Bearish confirmations: below 23500 and below 22500. Bullish continuation: consolidation above 26,000.”
The argument that BTC/USD would ultimately fail to break through resistance was bolstered by the perception that US equities were hitting their own long-term highs.
SPX hitting a long-term level here
— Rager (@Rager) August 16, 2022
SPX is hitting a long term level here. Could make some profits which will naturally affect BTC and ETH price with possible pullback pic.twitter.com/kLUgbtfz7d — Rager (@Rager) August 16, 2022
In his analysis, Jurrien Timmer, director of global macroeconomics at asset manager Fidelity Investments, noted that a large share of S&P 500 stocks were trading above their 50-day moving average.
“The percentage of S&P 500 stocks trading above their 50-day moving average — 88% — is staggering,” he said. said.
“Does this have enough positive momentum to indicate a new cyclical bull market is underway, or is it just a bear market rally that is now overbought?”
In a later post, he added many stocks had a relative strength index (RSI) of 70 or higher, Timmer says speaking to the “momentum” behind the current rally.
Timothy Peterson, investment manager at Cane Island Alternative Advisors, issued an equally gloomy long-term outlook for the S&P 500.
The expected return on US equity over the next 10 years is 0: the S&P 500 is ~4,000 in 2032. #Inflation-adjusted, #stock they will lose ~30% of their purchasing power. Oh, and this is a completely different metric than previously posted.https://t.co/Mz09UVIzT2 pic.twitter.com/L0aOWxz1F3
— Timothy Peterson (@nsquaredmacro) August 15, 2022
The expected return on US stocks over the next 10 years is 0: the S&P 500 will be at ~4,000 in 2032. #Adjusted for inflation, #stocks will lose ~30% of their purchasing power. Oh, and this is a completely different metric than previously posted.https://t.co/Mz09UVIzT2 pic.twitter.com/L0aOWxz1F3 — Timothy Peterson (@nsquaredmacro) August 15, 2022.
At the time of writing, the index was down 0.3% on the day, while the Nasdaq Composite Index was down 1%.
DOG steals the show from altcoins
On altcoins, Dogecoin (DOGE) led the gains within the top 10 cryptocurrencies by stable market capitalization.
Also Read: Traders Hesitate After Ethereum Price Rejects at $2,000
The DOGE/USD pair broke above $0.09 for the first time since May 18, representing 86.5% gains from the pair’s recent macro low in mid-June.
In contrast, Ether (ETH) has been flat over the past 24 hours, nevertheless trading below $1,900.
However, James Stanley, senior strategist at trading firm DailyFX, was bullish on ETH/USD from its June lows, putting support at $1,818.
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