Bitcoin falls below $16.7k as US GDP hits new BTC price ‘death cross’
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Bitcoin (BTC) fell at Wall Street’s opening on Dec. 22 as US stocks reversed earlier gains.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bitcoin risks a new and invisible “death cross”.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to intraday lows of $16,650 on Bitstamp.
The pair remained a prominent stock mimic as the S&P 500 opened 1.6% lower and the Nasdaq Composite Index was down 1.8% at the time of writing.
The weakness appeared to be a reaction to stronger-than-expected US gross domestic product (GDP) growth in the third quarter, data for which was released ahead of the open.
Despite perceived signs of recovery, concerns centered on the US Federal Reserve continuing its tightening economic policy on the assumption that the economy would withstand the measures.
This would notionally take the form of prolonged rate hikes, with analyzes already arguing that a monetary policy “pivot” is unlikely until 2024 at the earliest.
As such, risk assets saw no relief from GDP pressures, further disappointing traders hoping for a Christmas rally.
“Clear bearish retest. Downtrend intact,” Crypto trader and analyst Il Capo commented on the daily chart of the S&P 500.
Crypto’s Il Capo warned earlier this week that markets as a whole are “unprepared” for new losses to come.
As for bitcoin, sentiment among some pundits was also firmly bearish.
Bleeding Crypto highlighted a never-before-seen “death cross” with the 50-day and 200-day exponential moving averages (EMAs) due now.
Annotated BTC/USD chart. Source: Bleeding Crypto/ Twitter
Daan Crypto Trades, meanwhile, drew attention to the financial statements, which will likely be Bitcoin’s third negative year ever.
“The percentage loss this year is right between the other two negative years, 2014 and 2018,” he said written down.
Annotated BTC/USD chart. Source: Daan Crypto Trades/ Twitter
Elsewhere, analyst Toni Ghinea had little optimism for Bitcoin bulls, arguing that the macro bottom would not appear until Q1 2023.
“Surrender before 11-14k. Bottom in Q1 2023. Expect definitive move down soon,” one tweeted read on that day.
Annotated BTC/USD chart. Source: Toni Ghinea/ Twitter
Dollar Seeks Comeback After GDP Pressure
Meanwhile, the main beneficiary of the GDP figure was the US dollar, which confidently gained strength on the day.
Related: Low Bitcoin volume triggers BTC price alert as metric hits “value zone”.
The US Dollar Index (DXY) is circling 104.5 at the time of writing, a rise from pre-open lows of 103.75.
The greenback has thus made some way to erase losses stemming from surprise intervention by the Bank of Japan earlier in the week.
US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
