Bitcoin (BTC) saw weakness at the Jan. 25 Wall Street open as United States equities fell in step.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBTC price faces stiff resistance
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading below $22,500 after failing to crack resistance near five-month highs.
U.S. stocks saw a weak start to the session, the S&P 500 and Nasdaq Composite Index down 1.1% and 1.6%, respectively at the time of writing.
Bitcoin bulls had themselves faced trouble attempting to push into an area of liquidity above $23,400, this so far remaining unchallenged and home to a significant number of would-be short liquidations.
Traders remained on the fence, hoping that a clearer trading signal would come after several days of essentially sideways price action.
“This is what I am looking for on Bitcoin with a corrective wave now, followed by another leg up to my $25,000 overall,” Crypto Tony commented alongside an explanatory chart.
“Invalidation is if we began to breakdown from here.”
BTC/USD annotated chart. Source: Crypto Tony/ TwitterCointelegraph contributor Michaël van de Poppe was also opting to wait and see on the day.
“Patiently waiting for Bitcoin to drop beneath $22.3K or breaking and reclaim $23.1K. In between I don't see much of an interesting set-up,” he told Twitter followers.
Some optimistic takes remained, including that from Crypto Ed, who eyed a potential higher low for BTC/USD setting the stage for new highs.
Fellow trader Kaleo even suggested that $30,000 would be Bitcoin’s next target.
Bitcoin correlation to gold surge
A topic of interest beyond price action meanwhile focused on Bitcoin’s correlation with both gold and stocks.
Related: Bitcoin faces ‘considerable danger’ from Fed in 2023 — Lyn Alden
Charles Edwards, CEO of crypto investment firm Capriole, noted that Bitcoin was continuing its historical tendency to play "catch-up" with gold.
“There is a relationship between Bitcoin and gold and gold is pumping,” he wrote.
“When you lag the gold price, it's easier to see. Bitcoin tends to top between 0-6 months after gold and bottom 0-3 months after gold. This gap is approximate and will likely close with time.”
BTC/USD vs. XAU/USD annotated chart. Source: Charles Edwards/ TwitterBitcoin’s correlation to gold stood at practically 100% on the day.
BTC/USD vs. XAU/USD chart. Source: TradingViewConversely, Kaleo hoped for a “decoupling” from the S&P 500, with Bitcoin primed to break out to the upside.
“BTC broke out above HTF resistance dating back to the November '21 ATH ~two weeks ago,” a further tweet stated.
“It looks like it's about to continue that trend, as it's currently on the verge of breaking out of a pennant it's been accumulating in above support.”
BTC/USD vs. S&P 500 annotated chart. Source: Kaleo/ TwitterThe views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
