Bitcoin (BTC) faced challenges as it entered the Wall Street trading session on Jan. 25, coinciding with a drop in United States equities.
BTC price encounters significant resistance
BTC/USD dropped below $22,500 after struggling to surpass resistance levels near five-month highs, according to data from Cointelegraph Markets Pro and TradingView.
At the same time, the S&P 500 and Nasdaq Composite Index experienced a weak start, with declines of 1.1% and 1.6%, respectively.
Bitcoin investors found it challenging to breach the liquidity area above $23,400, where potential short liquidations were concentrated. Traders remained uncertain, expecting clearer signals after days of sideways trading.
Crypto analyst Crypto Tony predicted a corrective wave on Bitcoin with a potential rise to $25,000, while cautioning against a breakdown.
Another analyst, Michaël van de Poppe, preferred to observe Bitcoin dropping below $22.3K or breaking and reclaiming $23.1K for a more favorable setup.
Despite the uncertainty, some optimistic predictions surfaced, including expectations of a higher low for BTC/USD leading to new highs, with some even speculating a $30,000 target for Bitcoin.
Bitcoin’s correlation with gold rises
Aside from price movements, attention shifted to Bitcoin’s relationship with gold and stocks.
Charles Edwards of Capriole noted Bitcoin’s trend of catching up to gold’s movements, emphasizing a near 100% correlation between Bitcoin and gold.
On the other hand, Kaleo expressed hopes for a separation from the S&P 500, suggesting Bitcoin was poised for an upward breakout, based on recent price actions.
The discussion around Bitcoin’s interconnectedness with gold and stocks continues to evolve, impacting the digital asset’s performance in the global market.
The opinions expressed in this article belong solely to the authors and do not necessarily represent those of Cointelegraph.
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