bitcoin (BTC) fell at the Wall Street open on December 22, as US stocks reversed earlier gains.
Bitcoin risks a new and invisible "cross of death"
Data of Cointelegraph Pro Markets Y TradingView showed that BTC/USD fell to intraday lows of $16,650 on Bitstamp.
The pair remained a conspicuous mimic of stocks, as the S&P 500 opened down 1.6% and the Nasdaq Composite Index traded down 1.8% at the time of writing.
The weakness appeared to be a reaction to stronger-than-expected US gross domestic product (GDP) growth in the third quarter, data for which was released ahead of the open.
Although in theory it is a sign of recovery, concerns centered on the Federal Reserve continuing with its restrictive economic policy under the assumption that the economy would be able to resist the measures.
In theory, this would come in the form of longer lasting interest rate hikes, with analysis already arguing that a "pivot" in policy was unlikely until 2024 at the earliest.
As such, risk assets did not see any relief from the GDP print, further disappointing traders who had been hoping for a Santa rally.
โOf course bearish retest. Downtrend intactโ, trader and analyst Il Capo de Crypto commented on the S&P 500 daily chart.
The head of crypto warned earlier this week that markets as a whole were "unprepared" for what would be further future losses.
On Bitcoin, the mood among some experts was also firmly bearish.
bleeding crypto highlighted a never before seen โdeath crossโ involving the now expiring 50 and 200 day EMAs.
Meanwhile, Daan Crypto Trades drew attention to the annual close, which is likely to become the third negative year for Bitcoin.
โThis year's percentage loss is right between the other two negative years, 2014 and 2018,โ he said. noted.
On the other hand, analyst Toni Ghinea had little optimism in store for Bitcoin bulls, arguing that the macroeconomic bottom would not appear until the first quarter of 2023.
โCapitulation to 11-14k. Bottom in Q1 2023. Looking forward to final move down soon,โ a tweet read up to date.
Dollar Seeks Recovery After GDP Print
Meanwhile, the main beneficiary of the GDP print was the US dollar, which saw a confident rebound in strength on the day.
Related: Low Bitcoin volume triggers BTC price warning when metric reaches 'value zone'
The US Dollar Index (DXY) was hovering around 104.5 at the time of writing, from pre-open lows of 103.75.
Thus, the greenback somehow recovered the losses engendered by a surprise intervention by the Bank of Japan earlier in the week.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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