Bitcoin (BTC) halted its recent rally at Wednesday’s open on Wall Street as U.S. investors sold off.
Key points:
- Bitcoin approaches $78,000 before US open loses momentum, continuing the trend from earlier in the week.
- American stock markets await Nvidia’s results in a tense macro environment.
- Bitcoin Coinbase Premium sees multi-month lows as a sign of ‘gentle’ US demand.
BTC price stops at $78,000 ahead of Nvidia numbers
Data from TradingView showed BTC/USD reaching $77,678 on Bitstamp before the US trading session triggered fresh losses.
BTC/USD Hourly Chart. Source: Cointelegraph/TradingView
Copying his moves Bitcoin has faced unfavorable developments since the first two trading days this week as US market sentiment remained bearish on the macroeconomic outlook.
The S&P 500 index fell 1.3% before recovering, with investors waiting for a key potential catalyst for volatility this week: first-quarter earnings for technology company Nvidia.
On Monday, the Kobeissi Letter trade resource described these numbers were considered the “biggest earnings event of the quarter.”
He continued by noting the role of technology stocks in driving the S&P 500’s strength – even as the U.S.-Iran war and the associated risk of inflation spooked other markets.
“A few technology companies drive the entire market,” the article says summarized in the post on X.
One-hour chart of the S&P 500. Source: Cointelegraph/TradingView
Bitcoin Coinbase Premium reflects “soft” demand
In cryptocurrency circles, attention focused on the Coinbase Premium Index, which highlighted an ongoing trend no bullish moods during trading sessions in the US.
Related: BTC price “bull trap” at 76.5 thousand. dollars? Five things to know about Bitcoin this week
The index, which measures the price difference between Coinbase’s BTC/USD and Binance’s BTC/USDT, fell to its lowest level since February that day.
Commenting in one of them QuickTake Blog Postsonchain analytics platform CryptoQuant said demand for spot bitcoin “remains weak.”
“The latest Coinbase Premium Gap reading is near -$66.8, which means Bitcoin is trading at a lower price on Coinbase Pro’s USD pair compared to Binance’s USDT pair. This is higher than the late March reading of around -$62.6, when Bitcoin was trading near $68,000,” wrote co-author Amr Taha.
“The comparison is important because Bitcoin is currently trading much higher, around $77,200, however, Coinbase’s discount to Binance is greater than when BTC was trading almost $9,000 lower.”
Bitcoin Coinbase Premium Vulnerability (screenshot). Source: CryptoQuant
Others monitored known trend lines, including the 21-week exponential moving average (EMA).
As Cointelegraph reports, BTC/USD regained this level on a weekly basis in tardy April, only to lose it again this week.
“Bitcoin closed weekly below the 21-week EMA (green), which technically positions the price to potentially turn into new resistance in the event of an upcoming rebound,” trader and analyst Rekt Capital he said X followers on Tuesday when analyzing the weekly chart.
“The transformation of the 21-week EMA into new resistance would fully confirm its break.”
BTC/USD weekly chart. Source: Rekt Capital/X
