BTC is heading towards the support of $ 42 thousand as the withdrawal of the stocks also lowered the Bitcoin price. Turbulent macro movements underscore Bitcoin’s correlation with US stock indices as BTC/USD hits its lowest-ever levels for March. Details are on Kriptokoin.com.
Bitcoin heads towards 42k support
Bitcoin (BTC) broke $43,000 after the March 3 Wall Street opening with US stocks in a downtrend. Forty-three thousand dollars held overnight as support, though it has seen multiple tests as traders see a potential bounce zone around $1,000. On March 2, popular Twitter account Credible Crypto compared the current behavior with the bull run that started in September 2020, saying, “The last part of our corrective structure that preceded the 3rd impulse wave from 10K to 60K+ was a triangle, it’s good to see something similar here if our bottom is inside. would be,” he said. Credibke Crypto also said, “Note that a longer bottom typically leads to a stronger impulse. Retracements to 38K-42K in BTC are healthy,” he said.
BTC/USD at the time of writing was around $42,500, a low point for March. The S&P 500 fell 0.7% in one day after the clearest signals from the United States Federal Reserve of a possible key rate hike. As Russia and Ukraine came together to begin more negotiations, the geopolitical turmoil focused on Europe remained the decisive macro force as well.
Safe harbor status back?
Professional trading firm QCP Capital meanwhile focused on Bitcoin’s potential advantage over the largest altcoin Ether (ETH) as macro events unfold. According to the firm, while Bitcoin has regained its safe-haven status, the same cannot be said for altcoins. The firm says in its statement:
The focus on BTC was even reflected in volume markets where 10-day volatility was 4% higher for BTC than ETH (94.5% versus 99%). Anecdotally, there has been much higher interest in BTC compared to ETH. This caused the implied volume spread between BTC and ETH to drop to lows of around 7%. Along with the spot recovery, implied volumes are also trading softer.
QCP added that “some downside risk” should remain in the second quarter thanks to Fed policy, regardless of the size and timing of the rate hike.
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