Bitcoin plunges below $38k as tech stocks take a beating, pandemic gains disappear

Bitcoin fell in the afternoon session on Wednesday as bargain hunters and dip takers failed to sustain this morning’s momentum. The major cryptocurrency continues to maintain price action similar to tech stocks.

Bitcoin price is falling

Bitcoin plunged below $38,000 when Wall Street opened, giving up half of its gains on Feb. Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it plunged below $38,000 as Wall Street opened, cutting half of its gains on Feb.

Bitcoin’s price has risen above $39,000 after an ongoing recovery. However, there was no good close above $39,000. As a result, the price fell again from the $39,200 level.

Bitcoin fell 4.35% to $37,621 on the second trading day of February, extending the January sell-off.

BTC/USD is trading at $37k after yesterday’s momentum. Source: Trading Display

Technology stocks also took a beating. Bloomberg data revealed how early pandemic gains were wiped out this year and last, with PayPal losing 52% and others including Zoom and Peloton losing 70% or more. PayPal led the way after failing to meet its profit expectations.

Related article | TA: Bitcoin lacks momentum above $38.5K, but declines are likely to be limited

Bitcoin is down nearly 45% from its all-time high of $69,000 since last year as rising inflation and fears that Russia and Kazakhstan would follow China’s lead and restrict crypto mining have led to previously uncontrollable speculators hedge their bets.

Popular Twitter Account TXMC Trades summarized on the day:

“The market structure for me is still clearly bearish below $39.6K. I would like to see daily closes above $40.2K before considering a bigger rally. My base case is still a $29K-$30K (or lower) test before discovering a future price. Macro FUD drives everything. HODL and wait.”

Despite continued low price performance, on-chain data remained positive. Willy Woo, a statistician, emphasized on Wednesday that all is well with Bitcoin under the hood, building on previous comments. He noted:

“Price relative to on-chain demand from both speculative and hodl-category investors are now both at the highest oversold level. The last time this happened was October 2020. The time before that was at the bottom of the COVID crash”

Related article | Goldman Sachs: Mainstream Adoption Won’t Raise Bitcoin Price

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