If bulls don’t keep the price above $19,500, Bitcoin could fall back to its range below $19,500. After a few weeks of stability, the trend for cryptocurrency was to go up. This made a lot of people feel good about the market, but hopefully, people might have been too quick to say they would make more money.
At the time of this writing, the price of Bitcoin is $20,400. It has lost 2% in the last 24 hours and gained 7% in the last week. Other cryptocurrencies in the top 10 by market cap show signs of weakness but keep their gains on long timeframes.
The Bitcoin Price Reacts Poorly To Companies Earnings, What To Expect?
Data from the research company Santiment shows that after the recent rise in the price of Bitcoin, there was a big jump in activity on the chain. In this way, the volume and activity of BTC trading reached a 4-month high, which is usually a sign of bigger changes to come.
But the recent earnings season in traditional markets could limit any bullish potential. Due to uncertainty in the economy as a whole, Bitcoin and stocks move in the same direction.
So, earnings season has had a big effect on the new type of asset. Amazon (AMZN) and Apple (APPL) both released their Q3, 2022 reports today. Like Meta (META), which used to be called Facebook, the companies didn’t meet what the market wanted.
As a result, the Nasdaq 100, an index of stocks that measures how well the best tech companies are doing, fell. The price of Bitcoin is being hurt by the fact that the old financial markets aren’t doing well.
Still, if the Nasdaq 100 stays at its current level, there may be hope for stocks and Bitcoin. According to an analyst with a fake name:
Pretty big sweep of last week’s low on the $NASDAQ. Volatility all around with $META & $AMZN getting slaughtered today. $AAPL with a solid report but being dragged down by the rest a bit. Kinda expecting this one to take back some of those losses to end the week though.
The Future Might Be In The Past
Director of Macro for Fidelity, Jurrien Timmer, says that earnings season looks like “any other.” He says that 71% of public companies beat expectations by a small amount. So, Timmer thought it was just another “nothing to see here” quarter.
Based on this information, it seems likely that the Bitcoin price and other assets will keep doing what they have been doing in 2022, which is moving sideways without a clear direction. Next year could be a big one for global markets, but Timmer seems to think that price performance will be less exciting.
The expert thinks that the stock market and, by extension, all related assets are moving in the same way as they did in 1946 and 1947 when the U.S. dollar had a lot of inflation. In the long run, this could be bad for investors who are on the short side of the trade.
Today’s market cycle has similarities to 1946-47. Then, as now, stock prices reflected the impact and then hangover of a major fiscal/monetary impulse. If the analog holds, we could be in the process of another 15% counter-trend rally followed by another retest of the lows. pic.twitter.com/2VFvaJw2qd
— Jurrien Timmer (@TimmerFidelity) October 26, 2022
