Bitcoin (BTC) saw weakness at the January 25 Wall Street open as US equities fell in step.
BTC price is facing stiff resistance
Data from Cointelegraph Markets Pro and TradingView show BTC/USD heading below $22,500 after failing to crack resistance near the five-month high.
US stocks saw a weak start to the session, with the S&P 500 and Nasdaq Composite Index down 1.1% and 1.6%, respectively, at the time of writing.
Bitcoin bulls themselves face obstacles trying to push to the liquidity area above $23,400, this is still unchallenged and home to a significant number of would-be short liquidations.
Traders remain on the fence, hoping that clearer trading signals will come after a few days of lopsided price action.
“This is what I’m looking for in Bitcoin with the current corrective wave, followed by another leg to $25,000 overall,” Crypto Tony comments along with explanatory charts.
“Invalidation if we start to break from here.”
Cointelegraph contributor Michaël van de Poppe also chose to wait and see the day.
“Be patiently waiting for Bitcoin to drop below $22.3K or break it and return to $23.1K. In between I don’t see many interesting set-ups,” he toward Twitter followers.
Some optimistic take remains, including from Crypto Ed, that eyes lower potential for BTC/USD setting the stage for new highs.
Fellow merchant Kaleo even recommended that $30,000 will be Bitcoin’s next target.
Correlation of Bitcoin with gold surge
Topics of interest beyond price action meanwhile focus on Bitcoin’s correlation with gold and stocks.
Related: Bitcoin faces ‘considerable danger’ from the Fed in 2023 – Lyn Alden
Charles Edwards, CEO of crypto investment firm Capriole, noted that Bitcoin continues its historical tendency to play “catch up” with gold.
“There is a relationship between Bitcoin and gold and gold pumping,” he said write.
“If you lag the price of gold, it’s easier to see. Bitcoin tends to top between 0-6 months after gold and bottom 0-3 months after gold. This gap is approximate and will close over time.
Bitcoin’s correlation with gold is almost 100% daily.
On the contrary, Kaleo expects a “decoupling” from the S&P 500, with Bitcoin primed to break out to the upside.
“BTC broke above HTF resistance from November 21st ATH ~ two weeks ago,” another tweet said.
“It looks like it will continue the trend, because it is now on the verge of breaking out of the flags that have gathered at the upper support.”
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.