Crypto analyst Chase noted BTC’s disappointing performance against stocks, specifically the S&P 500 since July. “BTC is really in trouble amid a bullish S&P500 (ES). Even a bear like me was expecting a lot more from BTC. I think this speaks to how weak crypto still is and that big money definitely prefers the S&P500 over crypto right now.”he explained with Cointelegraph.
What can happen to the price?
Over the weekend, Bitcoin made a strong move on a multi-month downtrend line and broke through the $24,000 level, following a path that many traders anticipated would trigger a move higher and gap VPVR to the $28,000 level. at $29,000.
Trader Cheds said “BTC really looked like it was going to go last night” but selling at resistance created an “outside bar” where “the previous trend was challenged” and according to Cheds this is a sign that “ The trend may be stalling and watch for signs of further weakening.”
All in all, after a 130% and 42.5% rally in Ether and BTC, each was poised for a bit of profit-taking, especially at resistance. Open interest in both assets remains near all-time highs, but what it will take for BTC to break or break the multi-month downtrend line is unknown.
Perhaps a 1% rate hike, tighter crypto regulations or an unexpected turn in equity markets could send the price back down towards yearly lows. On the other hand, a successful Ethereum meltdown could be a positive catalyst triggering a high-volume rally above Bitcoin’s key resistance level.
Source: Ambito
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