Bitcoin price hits multiday low as data warns of ‘overbought’ stocks

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Bitcoin (BTC) sank to intraday assist on Aug. 16 as issues emerged over the destiny of United States inventory markets.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

U.S. shares face stiff resistance

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hitting $23,685 on Bitstamp, nearing lows from Aug. 12.

After an eerily calm 24 hours, draw back set in on the day’s Wall Road open as earlier highs in extra of $25,000 seemed more and more like a double high.

Analyzing the potential outcomes, a usually conservative Il Capo of Crypto warned that upside was now extremely unlikely given Bitcoin’s lack of ability to interrupt out.

“Two choices, each bearish,” he began a recent Twitter replace on the day by saying.

“1) As much as 25400–25500 after which reversal of this medium tf bullish development, straight to new lows. 2) Straight to new lows from right here. Bearish confirmations: under 23500 and under 22500. Bullish continuation: consolidation above 26k.”

The argument that BTC/USD would finally fail to crack resistance was strengthened by the view that U.S. equities had been arising in opposition to long-term ceilings of their very own.

In his personal evaluation, Jurrien Timmer, director of worldwide macro at asset supervisor Constancy Investments, moreover flagged a big proportion of S&P 500 shares buying and selling above their 50-day transferring averages.

“The share of shares within the S&P 500 buying and selling above their 50-day transferring common—88%—is beautiful,” he commented.

“Does this sign sufficient optimistic momentum to point {that a} new cyclical bull market is underway, or is that this merely a bear market rally that’s now at an overbought excessive?”

A subsequent post added that many shares had a relative energy index (RSI) of 70 or extra, one thing Timmer stated spoke to the “momentum” behind the present rally.

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Timothy Peterson, funding supervisor at Cane Island Various Advisors, in the meantime had an equally unappealing long-term prognosis for the S&P 500.

The index was down 0.3% on the day on the time of writing, whereas the Nasdaq Composite Index traded down 1%.

DOG steals the present on altcoins

On altcoins, it was Dogecoin (DOGE) main the features amid an in any other case flat high 10 cryptocurrencies by market cap.

Associated: Traders flinch after Ethereum price rejects at $2,000

DOGE/USD handed $0.09 for the primary time since Might 18 on the day, marking features of 86.5% versus the pair’s current macro backside in mid-June.

DOGE/USD 1-day candle chart (Binance). Supply: TradingView

Against this, Ether (ETH) was unmoved over the previous 24 hours, nonetheless buying and selling underneath $1,900.

ETH/USD 1-day candle chart (Binance). Supply: TradingView

James Stanley, senior strategist at buying and selling agency DailyFX, was nonetheless bullish on ETH/USD versus its personal June lows, placing assist at $1,818.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your personal analysis when making a choice.