Bitcoin sets lower lows as 2021 BTC price resistance taunts hodlers
Bitcoin (BTC) fell further pre-Wall Street on Feb. 3 as analysis revealed old resistance levels had returned to haunt bulls.
Data from Cointelegraph Markets Pro and TradingView painted another uninspiring picture for BTC/USD Thursday, with the pair meeting new lows of $36,275 on Bitstamp.
After shock tech stock moves during Wednesday's trading session, the knock-on effect for crypto remained palpable as major tokens struggled to stabilize.
Zooming out, popular trader and analyst Rekt Capital revealed the area at $38,600 — a stumbling block at several points in 2021 — was once again acting as a line in the sand for bulls to cross.
"Indeed, BTC produced an upside wick into resistance on its latest recovery," he tweeted.
For others, including fellow trader Anbessa, it was a case of "the lower, the better" for Bitcoin, this chiming with existing expectations of a more significant breakdown occurring before a full recovery.
#BTC Update- dead cat inside LTF rising wedge, breakout & continuation- current support levels mid range, M-neckline & downtrending channel (since Nov21) The lower we go the better r:r ratio for a new #midterm LONG entry. Eg nuke scenario (right) crowded greedy entry pic.twitter.com/nCJVcHiQjc
Tech stock trouble meanwhile erased positive sentiment from other macro cues, with Russia's proposal to allow banks to sell Bitcoin and India's new crypto tax proposal taking a back seat.
Turning to on-chain metrics, it was the turn of the Puell Multiple this week to follow Bitcoin's relative strength index (RSI) in printing a major "oversold" signal.
Related: Bitcoin whales buy at $38K as BTC supply per whale hits 10-year high
Created by David Puell, the popular indicator uses miner revenues relative to spot price to
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