Bitcoin follows fresh US stocks plunge as analysis ‘expects’ BTC price to capture $37.5K in liquidity

Bitcoin (BTC) faced selling pressure as Wall Street opened on April 22 as markets began a repeat of April 21 losses.

No slacking for stocks or crypto as losses mount

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD followed a fiercely familiar course on April 22, hitting lows of $39,197 on Bitstamp.

The previous day had cost the bulls support at $40,000, a level yet to be consolidated as a meaningful line in the sand at the time of writing.

For analytical resource Material Indicators, it was now a matter of observing how bids are being filled further down the exchanges’ order books.

Between Spot and $37,500, Binance had around $100 million in bids waiting, according to an attached chart.

“Expect it to be filled, but watch for BTC/USDT liquidity moving into active buy zone or buy zone moving into orders dormant on Binance order book,” Material Indicators commented.

US stocks showed no sign of slowing down in their new flight, with the S&P 500 down 1.75% and the Nasdaq 100 down 1.43% in the first ninety minutes of trading.

In Europe, the picture was worsened by the sell-off in bond markets, which reached what market commentator Holger Zschaepitz called “historic proportions”.

The ongoing sell-off in the European corporate bond market has reached historic proportions, with high-quality bonds posting a record 8.6% loss in terms of total returns since their peak in August. This is now a worse downturn than the lows set during the early coronavirus turmoil and the GFC, BBG has calculated. pic.twitter.com/X7Tai3IiU1

— Holger Zschaepitz (@Schuldensuehner) April 22, 2022

Traders ‘underestimate failed breakout’

Traders, by and large, have also been in a “wait and see” mode in relation to bitcoin. Cointelegraph contributor Michaël van de Poppe told Twitter followers that BTC/USD is now in a “crucial” area.

Related: Nasdaq has dot-com crash ‘deja vu’, trader says as Bitcoin correlation rises

“The level has been reached. Let’s see how the market will react to Bitcoin from this area,” he said wrote in its latest update.

Meanwhile, popular trader Cheds took a more ominous line as he examined multi-week price action.

With a failure to finally break the 2022 trading range earlier this month, Bitcoin’s outlook may now be bleaker than many would like to believe, he warned on April 22.

$BTC In my opinion, most market participants underestimate the impact of this failed breakout https://t.co/aREFTXTzYo

— Cheds (@BigCheds) April 22, 2022

Bitcoin is not short of bearish medium-term price predictions, including those from former BitMEX CEO Arthur Hayes, who expects a return of $30,000 by June.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.