Bitcoin (BTC) fell on Wall Street’s opening on Feb. 2, as another technical stock price sent traders into a panic. BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingViewBitcoin: “Macro FUD Drives Everything” Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it plunged below $38,000 when Wall Street kicked off, returning half of Monday’s gains. traded near $37,600 as tech stocks took a beating. These were led by PayPal, shares in which nearly 25% were lost after the company reported missed earnings targets. Data from Bloomberg showed how much early pandemic gains have wiped out this year and last, in the case of PayPal 52% and others, such as Zoom and Peloton, by 70% or more. So, with the latest dip taking bulls even further away from crucial resistance, short-term analysts were uninspired by Bitcoin. “The market structure for me is still clearly bearish below $39.6k. I would like to see daily closes above $40.2k before feeling a bigger rally possible,” the popular Twitter account TXMC Trades summarized that day. “My base case is still a test of $29-30k (or lower) for a future price discovery. Macro FUD is the driving force behind everything. HODL and wait.” As Cointelegraph reported, not everyone expects immediate downside effects, with the possibility of a $40,000 retest still possible for some. Data on the chain also remained encouraging, despite the low price performance continuing. Echoing previous comments, statistician Willy Woo reiterated on Wednesday that all is healthy for Bitcoin under the hood. “Price relative to on-chain demand from both speculative and hodl-category investors are now both at the highest oversold level,” he told Twitter. followers. “The last time this happened was October 2020. The time before that was at the bottom of the COVID crash.” A look at the derivatives markets at the time of writing saw funding rates slightly negative as fellow analyst William Clemente took the opportunity to remind traders that negative rates don’t necessarily mean shorter rates “piling up” the market. in the hope of further deterioration. BTC futures funding percentages chart. Source: CoinglassAltcoins weathers the market storm Altcoins, meanwhile, remained broadly stable, with Ether (ETH) the outlier of the major tokens dropping 2.1% on the day. /USD traded at $2,680 after Wall Street opened, nevertheless still up 1.7% from the same time a week ago.ETH/USD 1-hour candlestick chart (Bitstamp). Source: TradingViewOthers in the top ten cryptocurrencies by market cap were either flat or fell by a modest amount compared to Bitcoin’s 1.6% dip. As Cointelegraph reported, Bitcoin has increased its market cap dominance against altcoins in recent weeks to reach a two-month high.
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