If the bulls do not defend their current levels, Bitcoin prices could drop to below $19,000. After weeks of consolidation, the cryptocurrency trend was higher, but it might have seen more profit-promising participants.
Bitcoin trades at $20,000. This represents a 2% drop in price over 24 hours. It also has a 7% gain over the past week. Others cryptocurrencies that are in the top 10, by market cap, hint at weakness. However, they can still make gains in short time frames.
Bitcoin’s Price Does Not React Well to Earnings from Companies. What Can You Expect?
Santiment research company data indicatesThe recent upward momentum in Bitcoin’s price was followed closely by an increase in on-chain activities. In that sense, BTC’s trading volume and activity reached a 4-month high which usually precedes more significant moves.
The recent earnings season in the traditional markets may have capped any bullish potential. Due to uncertainties in the macroeconomic environment, Bitcoin and stocks have been moving together.
Earnings season is a significant factor in the development of an asset class. Amazon (AMZN), Apple (APPL), have published the Q3-2022 report. These companies did not meet the market’s expectations, just like Meta (META), which was formerly Facebook.
The Nasdaq 100 stock index, which tracks top-tech companies’ performance, fell as a consequence. Bitcoin’s price has been affected by the weakness of the financial legacy markets.
If the Nasdaq 100 is able to maintain its current level of performance, stocks and Bitcoin might still be viable options. A pseudonym says that the following statements are true. analyst:
Pretty big sweep of last week’s low on the $NASDAQ. Volatility all around with $META & $AMZN getting slaughtered today. $AAPL is showing solid results but has been dragged down a little by the rest. I was expecting that this would make up some of the losses at the end of the week.
Perhaps the future is in the past
Jurrien Timmer is the Director of Macro for Fidelity. Earnings season looks like “any other.” 71% of public companies beat expectations by a relatively small margin. Thus, Timmer classified the event as another “nothing to see here” quarter.
The data suggests that Bitcoin prices and assets could continue trending sideways without a clear direction. Timmer suggests that next year could be decisive for global markets. However, Timmer also suggests more boredom in price performance.
Expert believes that the stock and other correlated assets move in sync with the 1946-1947 market periods, which are times of high inflation for U.S. dollar. Investors on the short end of trade could find this situation to be detrimental.
Today’s market cycle has similarities to 1946-47. As now, stock market prices reflect the aftermath and hangover from a significant fiscal/monetary initiative. The analog could hold, and we may be witnessing a 15% counter-trend rally that is followed by a retest the lows. pic.twitter.com/2VFvaJw2qd
— Jurrien Timmer (@TimmerFidelity) October 26, 2022