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

by Andrew Throuvalas
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Major resistance levels enter for U.S. equities, bringing with them fresh headwinds for crypto as Bitcoin and Ether lose $24,000 and $2,000, respectively.

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

Bitcoin (BTC) sank to intraday support on Aug. 16 as concerns emerged over the fate of United States stock markets.

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

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

U.S. stocks face stiff resistance

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

After an eerily calm 24 hours, downside set in at the day’s Wall Street open as previous highs in excess of $25,000 looked increasingly like a double top.

Analyzing the potential outcomes, a typically conservative Il Capo of Crypto warned that upside was now highly unlikely given Bitcoin’s inability to break out.

“Two options, both bearish,” he began a fresh Twitter update on the day by saying.

In his own analysis, Jurrien Timmer, director of global macro at asset manager Fidelity Investments, additionally flagged a large proportion of S&P 500 stocks trading above their 50-day moving averages.

“The percentage of stocks in the S&P 500 trading above their 50-day moving average—88%—is stunning,” he commented.

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

DOG steals the show on altcoins

On altcoins, it was Dogecoin (DOGE) leading the gains amid an otherwise flat top 10 cryptocurrencies by market cap.

DOGE/USD passed $0.09 for the first time since May 18 on the day, marking gains of 86.5% versus the pair’s recent macro bottom in mid-June.

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

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

By contrast, Ether (ETH) was unmoved over the past 24 hours, nonetheless trading under $1,900.

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

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

James Stanley, senior strategist at trading firm DailyFX, was nonetheless bullish on ETH/USD versus its own June lows, placing support at $1,818.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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