Bitcoin price hits multi-day 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.
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 $25,000 looked increasingly like a double top.
#BTC is dipping right now as part of a potential technical retest of previous resistance$BTC #Crypto #Bitcoin https://t.co/quL4gaM2nG pic.twitter.com/zrqzIbCvp2
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.
The argument that BTC/USD would ultimately fail to crack resistance was strengthened by the view that U.S. equities were coming up against long-term ceilings of their own.
SPX hitting a long-term level hereCould be some profit taking which is naturally going to impact $BTC and $ETH price with potential pullback pic.twitter.com/kLUgbtfz7d
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.
A subsequent post added that many stocks had a relative strength index (RSI) of 70 or more, something Timmer said spoke to the "momentum" behind the current rally.
Timothy Peterson, investment manager at Cane Island Alternative Advisors, meanwhile had an equally unappealing long-term prognosis for the
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