Time For Autopsy? Bitcoin May Plunge Further After Dive Below $30k
19 Mayo 2022 - 08:42AM
NEWSBTC
The next bull market in Bitcoin is now building a bottom. As a
result, bears continue to rule the market, sending the price of
bitcoin below $29,000 in the last 24 hours. Traders expecting the
bear market to conclude may have to wait longer due to unfavorable
conditions. Will Bitcoin Retrace? Bitcoin is no stranger to
retracements of higher than 20%. More substantial corrections have
occurred in Bitcoin’s history than this current one. Those who have
been around long enough to recall previous meltdowns of more than
50% in less than a month can attest that this is just another
hiccup. Since Bitcoin’s inception, there have been around seven
price corrections, with the price dropping by half. Bitcoin has
always bounced back after each of these corrections. Bitcoin fell
by 83% in a short period of time in April 2013. When China first
outlawed Bitcoin in December of that year, it dropped another 50%.
BTC/USD slides below $30k. Source: TradingView 2018 was a difficult
year. Although it reached an all-time high of about $20,000 in
December 2017, it was only worth about $3,000 in December 2018.
More recent investors will recall the March 2020 meltdown, when
Bitcoin dropped 50% in a few of days. In May of 2021, the same
event happened. Related reading | New Data Shows China Still
Controls 21% Of The Global Bitcoin Mining Hashrate Despite this,
markets are in chaos today, with Bitcoin down more than 20% in the
previous week and more than 50% from its all-time high in November
2021. The 200 week moving average(WMA) is probably the most
dependable and straightforward chart to provide some information on
Bitcoin’s present position . It usually rebounds back rapidly from
the 200 WMA. Only twice in history has Bitcoin fallen below the 200
WMA, and both times it was only for a short time. For more than a
month, it has never been below the 200 WMA. Bitcoin’s 200 WMA is
now about $22,000. With a current price of roughly $29,000, it may
probably go lower or even trade sideways for a while, but the worst
is likely behind it. Bloomberg Analyst Believes BTC Will Plummet
Despite a recent 15% rally from the lows reached last week,
Bloomberg analysts believe the flagship cryptocurrency will
continue to fall. BTC now appears to be more fragile than
previously. According to the article, Bitcoin’s recent rally has
resulted in the formation of a “saucer-top” pattern on an hourly
BTC chart. A Head and Shoulders pattern has emerged within it,
indicating a trend change from bullish to bearish. Source:
Bloomberg After BTC dipped beneath the formation’s neckline, the
pattern was activated. In order to avoid a further drop, the
Bitcoin price must now surge over $30,800. Santiment’s Bitcoin
statistics shows a lackluster market sentiment as traders remain
indifferent. On May 18, the S&P 500 fell more than 3%, dragging
Bitcoin down with it. Indeed, since the beginning of 2022, the
correlation between Nasdaq-100 and Bitcoin has remained tight,
making it a good indication for anticipating Bitcoin price
movement. Bitcoin-U.S. Equity Market Correlation. Source: Santiment
Nasdaq-100 futures and other U.S. index futures are down about 1.5
percent at the time of writing. It suggests that the Bitcoin price
may continue to fall. In fact, Asian and European stock markets are
down more than 2% today. Whales, on the other hand, appear to be
anticipating a bottom in order to continue accumulating. According
to Rekt Capital, Bitcoin’s RSI has now reached the level where
long-term investors have historically gained the most. Related
reading | Funding Rates Fall To Yearly Lows Following Bitcoin’s
Fall Below $29,000 Featured Image by Pixabay | Charts by
TradingView
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