Bitcoin hovered just above $82,500 on Wednesday, a level deemed crucial by XS.com for the short term. According to Simon-Peter Massabni, the company’s business development manager, losing this level decisively could intensify selling pressure, potentially pushing Bitcoin towards $70,000.
Renewed Correlation with Tech Stocks
Massabni notes that Bitcoin has started to move in tandem with tech stocks again. Last week, higher-than-expected U.S. inflation data, coupled with a sell-off in AI and chip stocks, exerted pressure on both Nasdaq and Bitcoin.
Simon-Peter Massabni explains that in the short term, this scenario challenges the perception of Bitcoin as a safe haven independent of traditional market volatility.
XS.com, known for providing access to a wide array of asset classes in global markets, observes that the link between risk appetite in the stock markets and the direction of crypto assets has become more evident in recent days.
Why the $82,500 Level is Monitored
Massabni stresses that a significant and lasting dip below $82,500 could hand control to the sellers. In this case, a move towards the $70,000 region could materialize. Wintermute shares a similar bearish outlook, suggesting that this scenario could imply an additional 15% drop from current levels.
Massabni states that a solid and enduring break below $82,500 might accelerate selling, whereas a rebound above $84,000 would weaken the $70,000 scenario.
Conversely, if prices break above $84,000 again, this primary bearish scenario could be invalidated. Thus, in the short term, two levels are crucial: $82,500 on the downside and $84,000 on the upside.
Global Risk Landscape Persists
U.S. futures indices experienced limited gains during the day. Nasdaq 100 futures rose by 0.4%, while S&P 500 futures increased by 0.2%. SpaceX shares surged by 9% in pre-market trading, following contributions exceeding expectations from its AI and satellite internet operations.
Another factor affecting market sentiment was energy prices. Brent crude prices surged past $110 per barrel following attacks near the Strait of Hormuz. U.S. treasury yields also rose slightly. Later in the day, financial results from Meta and Tesla are awaited.
