Bitcoin is trading down 2% on the day after a wider pullback in the global markets. At the time of writing, BTC has been rejected from the $21,000 level and is looking to consolidate at the $20,000 zone before starting the next leg up.
Amazon Drop 20%, Pushing BTC Price Lower
Amazon saw a significant 20% drop in after-hours trading as a result of missing earnings expectations. This caused a widespread sell-off in the markets as fears of a recession resurfaced. Over $230 billion was wiped off Amazon’s market valuation after the market closed, one the largest such decrease in history.
CEO Andy Jassy said in the company’s Q3 earnings release,
“There is obviously a lot occurring in the macroeconomic climate, and we’ll balance our investments to be more streamlined without jeopardizing our major long-term, strategic commitments.”
Amazon’s decline this year is indicative of the uncertainty in which tech titans around the world have found themselves, with this having knock-on effects in the cryptocurrency markets as well.
Meta, another large tech firm, has seen its stock price drop below $100 this week, bringing it back to 2015 levels.
Is the correlation between Bitcoin and US stocks fading?
The price of Bitcoin (BTC) is closely related to the value of equities, particularly technology stocks. Over the past few days, the correlation between Bitcoin and the S&P 500 has risen to 0.73 (blue).
Bitcoin Price Prediction as BTC Prepares For 30% Move Up
The current Bitcoin price is $20,159, with a $47 billion 24-hour trading volume. Bitcoin has dropped by more than 2% in the last 24 hours.
Bitcoin’s upward trend appears to be weakening as it fails to break through the major resistance level of $21,000. Unsurprisingly, sellers are entering the market, causing a bearish correction and possibly profit-taking before the weekend.
At $21,000, Bitcoin has completed a 61.8% Fibonacci retracement, and candles closing below this level are causing a bearish correction. The RSI and MACD entered the overbought zone, adding to the bearish price action.
In contrast, the 50-day moving average suggests buying above $19,600. A break above the 61.8% Fib level has the potential to extend the buying trend to $21,900. If the current upward trend continues, Bitcoin could reach $22,500 within the next couple of days.
On the downside, Bitcoin’s immediate support level is still near $19,900, where buyers could step back in.
A lower-than-expected rate hike from the Federal Reserve in the coming week may contribute to a 30% rally in Bitcoin and the wider altcoin markets. The next important date to look out for is: November 2nd for the Fed’s interest rate decision.
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