Bitcoin Due to Turmoil vs Gold, Stocks as BTC Price Drops Below $22.5K

Bitcoin (BTC) saw weakness at the Wall Street open on Jan. 25 as US stocks fell into line.

BTC price is facing stiff resistance

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fell below $22,500 after failing to break resistance near the five-month highs.

US equities had a weak start to the session, with the S&P 500 and Nasdaq Composite Index down 1.1% and 1.6% respectively at time of writing.

Bitcoin bulls themselves had run into problems trying to get into a liquidity area above $23,400, this has remained unchallenged so far and home to a significant number of possible short liquidations.

Traders remained on the fence, hoping for a clearer trading signal 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 total,” Crypto Tony noticed next to an explanatory chart.

“Invalidation is if we start to collapse from here.”

Cointelegraph employee Michaël van de Poppe also chose to wait for the day.

“Patiently waiting for Bitcoin to drop or break below $22.3K and recover $23.1K. In between, I don’t see much of an interesting set-up,” he said told Twitter followers.

Some optimistic recordings remained, including Crypto Ed’s, which eyes a potentially higher low for BTC/USD paving the way for new highs.

Even fellow trader Kaleo suggested that $30,000 would be Bitcoin’s next target.

Bitcoin correlation with gold spike

An interesting topic beyond price action, meanwhile, focused on Bitcoin’s correlation with both gold and stocks.

Related: Bitcoin faces ‘significant danger’ from the Fed in 2023 – Lyn Alden

Charles Edwards, CEO of crypto investment firm Capriole, noted that Bitcoin continued its historic tendency to overtake gold.

“There is a relationship between Bitcoin and gold and gold is pumping,” he says wrote.

“If you are behind the gold price, it is easier to see. Bitcoin tends to rise between 0-6 months after gold and fall 0-3 months after gold. This gap is approximate and will likely shrink over time.”

Bitcoin’s correlation to gold was practically 100% that day.

Conversely, Kaleo was hoping for a “decoupling” from the S&P 500, with Bitcoin poised to break to the upside.

“BTC broke above HTF resistance dating back to the November ’21 ATH ~ two weeks ago,” said another tweet.

“It looks like it is poised to continue that trend as it is currently on the verge of breaking out of a pennant it has built up in excess support.”

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.