Bitcoin (bitcoin) needs to hold current levels and work to reclaim higher levels to avoid a breakdown in the $20,000 range, the latest analysis warns.
Is $20,000 coming?
The pair posted fresh losses after a weekly close of $31,300, which in itself disappointed market participants after posting a seventh consecutive red weekly candle.
Even Luna Foundation Guard (LFG) revealed it was sold Almost all Bitcoin reserves A hint of a lack of selling ahead failed to lift sentiment during last week’s LUNA and TerraUSD crashes.
“The next few days are going to be very important IMO. Hold these levels and start higher from here,” concluded popular trader Phoenix in an article twitter post the same day.
Phoenix is far from the only one predicting a return to levels below last week’s floor, just below $24,000.
Adding to the consensus, trader and analyst Rekt Capital similarly noted that $20,000 is an area of interest if current levels fail to hold and buyers do not materialize.
#BTC monthly schedule
The price is around $28,800 support
2021, USD Bitcoin A long-term downside wick is formed at this support, indicating strong buyer interest here
— Rekt Capital (@rektcapital) May 16, 2022
last week’s action, he Add tomay have created a new trading range for Bitcoin with a macro range low of $28,800 as its upper limit.
“If this proves to be the case, the macro range lows could turn into resistance, again rejecting prices to lower levels,” he explained.
Meanwhile, some are cautiously optimistic about the short-term outlook, including Cointelegraph contributor Michaël van de Poppe.
“Not sure if we’ll get around $28.4K to test, but that’s a scenario I’ll be watching,” he said. Tell Twitter followers.
“The key bullish circuit breaker is $302,000. Overall, Bitcoin is expected to continue to rise to $32,800.”
At the time of writing, BTC/USD is trading around $29,300 on Bitstamp.
Bitcoin “Synonymous with Volatility”
On the macro front, the picture is broadly similar to what it has been in recent weeks: stocks are under pressure as the dollar continues to strengthen.
The U.S. dollar index (DXY) hit 105 on May 13 and attempted to retest that level as of May 16, when it was rejected.
The S&P 500 lost 0.65% on the day and the Nasdaq 100 lost 1.3%.
Twitter stock is in the headlines again, this time underperforming tech stocks, trading at less than what it was trading at before Elon Musk announced his 9% stake and takeover offer.
For Mike McGlone, chief commodities strategist at Bloomberg Intelligence, compare it to the dotcom bubble.
#cryptocurrency Compared #stock market: $1 Trillion Knockout vs. $20T – Cryptoassets have had the best performance over the past decade and the trend is accelerating in the 2020s. The dot-com bubble burst in 2000 is a reminder that emerging technologies/assets are synonymous with volatility pic.twitter.com/Jwxt6Yr8iG
— Mike McGlone (@mikemcglone11) May 16, 2022
“If the tide of risk assets continues to ebb, one of the top performers in history — Bitcoin — should face a decent mean reversion, but an early adoption day could be good for emerging technologies/assets,” he said wrote In another tweet of the day.
“Both Bitcoin and the S&P 500 fell below their 100-week moving averages.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.