Bitcoin (BTC) recovered above $ 37,000 on February 3. This was after the stock plunge removed the wind from Bulls’ recent attempt to break the $ 40,000 resistance.
“Abnormal movement” of stocks
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD remained low after temporarily reaching $ 36,650 on Wednesday’s bitstamp.
Following the shock loss of US equities on Wall Street, which opened on Wednesday, weaknesses continued, with major companies such as PayPal losing most of their value after an overwhelming performance report.
Major stocks are experiencing unusual post-earning movements outside of business hours this season
Apple + 7%
Google + 11%
Both liquidity and the Fed put are gone
— Alex Kruger (@krugermacro) February 3, 2022
Meta then continued a few hours later, losing 20% of its share price, triggered by data showing that it began to lose users for the first time.
When investors learn that the Metaverse literally doesn’t exist, Facebook’s “meta” goes to zero
— Cobie (@cobie) February 2, 2022
Bitcoin proponents enjoyed the event right away, but frustrating pricing behavior meant that the area identified as the main resistance / support flip seemed fragile.
“If Bitcoin loses this level at 37 Kish, I think it will start to fall sharply towards the lower end of the region around $ 34- $ 35,” said Cointelegraph contributor Michaelëlvan de Poppe. Said One night.
Van de Poppe added that the stronger US dollar could be the key to understanding the future of the crypto market as a whole. The US Dollar Index (DXY), where cryptography is traditionally inversely correlated, has recently been significantly lost.
“It really depends on DXY for what we’re trying to see in the crypto market,” he says. Said Twitter followers.
“If the DXY is reversing towards a downtrend in the coming weeks, it should be a big accelerator for Bitcoin’s uptrend.”
Altcoins catch up with Bitcoin losses
Meanwhile, Altcoins increased its losses on the day, with Solana (SOL) -led top 10 cryptocurrencies declining by nearly 10%.
Related: Price analysis 2/2: BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX
Many platform issues contributed to the downward pressure on prices, with SOL / USD trading at less than $ 100 at the time of writing.
Other weak performers were Polkadot (DOT) and Terra (LUNA), but Ether (ETH) decreased by 3.4% on the day.