Bitcoin (BTC) fell at the Wall Street open on February 2, when another crash in tech stocks sent traders panicking.
BTC/USD hourly candlestick chart (bit stamp). Source: Trading View
Bitcoin: “Macro RDF Drives It All”
Data from Cointelegraph Markets Pro and TradingView tracks how the BTC/USD pair fell below $38,000 when Wall Street kicked in, reclaiming half of the gains made on February 1st.
The pair is trading at around $37,600 at the time of writing when tech stocks have been beaten. It was led by PayPal, whose shares fell nearly 25% after the company reported unmet performance goals.
Bloomberg data showed how much early gains from the pandemic have faded this year and last, with 52% for PayPal and 70% or more for others like Zoom and Peloton.
With its recent fall driving the bulls away from critical resistance, analysts have not been inspired by Bitcoin in the short term.
“The market structure for me is still clearly bearish below $39.6K. I hope the daily bars are above $40.2K before I notice the possibility of a bigger rally,” summed up the popular TXMC Trades Twitter account of the day.
“My base case is still a test between $29,000 and $30,000 (or less) before any future price opens. Macro RDF drives everything. HODL and wait.”
As Cointelegraph reported, not everyone is expecting an immediate drop, and a new $40,000 check could still be made for some.
Data on the chain also remained encouraging despite the continued low prices. Building on previous comments, statistician Willy Wu confirmed on Wednesday that all is well under the hood of Bitcoin.
“The price in relation to online demand from both speculative and group investors is now at oversold highs,” he told Twitter followers.
“The last time this happened was in October 2020. The previous time was in the midst of the Covid crisis.”
A look at the derivatives markets showed that funding rates remained somewhat negative at the time of writing, as analyst William Clemente took the opportunity to remind traders that negative interest rates are not necessarily “short hair” in the market in hopes of further deterioration.
Bitcoin futures finance price chart. Source: Coinglass
Altcoins generally weather the market storm
Meanwhile, altcoins remained largely stable, with Ether (ETH) emerging among the top players with a 2.1% drop on the day.
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ETH/USD traded at $2,680 after the Wall Street open, but it is still 1.7% higher than the same period last week.
ETH/USD hourly candlestick chart (bit stamp). Source: Trading View
Other cryptocurrencies in the top ten by market capitalization either remained unchanged or declined by modest amounts compared to Bitcoin’s 1.6% drop.
As reported by Cointelegraph, in recent weeks Bitcoin has increased its market value compared to altcoins and reached its highest level in two months.