Sentiment throughout the cryptocurrency market plunged even deeper on Might 9 as an escalation within the ongoing sell-off intensified with bears pushing Bitcoin (BTC) to $30,334, its lowest worth since July 2021.
A number of elements like rising rates of interest, the top of straightforward cash insurance policies by the Federal Reserve, declining inventory costs and considerations associated to Terra’s UST stablecoin sustaining its $1 peg are all impacting sentiment throughout the crypto market.
Knowledge from Cointelegraph Markets Pro and TradingView reveals that a day of heavy promoting on Might 9 hammered the worth of BTC to a day by day low of $30,334 as bulls frantically regrouped to defend the psychologically vital $30,000 worth stage.
Right here’s a take a look at what a number of analysts are saying in regards to the outlook for Bitcoin shifting ahead, together with some perception into how BTC whales are reacting to the latest worth motion.
Has a bear market began?
The opportunity of a robust sell-off was mentioned previous to Monday’s transfer by analyst and pseudonymous Twitter consumer ‘Nunya Bizniz’, who posted the next chart highlighting a doable zone of capitulation for Bitcoin.
Nunya Bizniz mentioned,
“This 8-yr parallel channel has 4 excellent touches. Will there be one other capitulation spike low throughout the yellow circle, between crimson and blue, aligning with the prior all-time excessive?
Based mostly on the chart supplied, the worth of BTC might drop as little as $19,891 if such a state of affairs performed out.
A technique or one other, what comes subsequent for BTC is more likely to ripple throughout the cryptocurrency market as the present streak of losses is nearing record-breaking territory as famous by pseudonymous Twitter consumer ‘Bitcoin Archive’.
#Bitcoin went down 6 weeks in a row for simply the second time ever.
It has by no means had 7 crimson weeks in a row. pic.twitter.com/NNXuQUHQC9
— Bitcoin Archive (@BTC_Archive) May 9, 2022
Bitcoin worth is buying and selling under its 2-year shifting common
A extra constructive tackle the latest weak point was supplied by crypto analyst Philip Swift, who posted the next chart wanting on the BTC worth relative to its 2-year shifting common (MA).
The analyst mentioned,
“It is that point within the cycle once more! Value has dropped under the 2yr MA. Accumulate.”
Associated: Bitcoin price falls to $31K as traders prepare for a ‘rocky’ road and more downside
Whales wallets have been feasting
In keeping with Twitter crypto analyst Akash, Bitcoin whales have been accumulating by way of the earlier downturns and sideways worth motion.
Akash mentioned,
“Wallets holding 10,000 to 100,000 BTC have been on a shopping for spree since April 30.”
Whereas this knowledge is encouraging on some ranges it is vital to do not forget that there aren’t any ensures towards one other pattern change or additional draw back and merchants can be smart to imagine nothing and take additional care to handle their danger shifting ahead.
The general cryptocurrency market cap now stands at $1.411 trillion and Bitcoin’s dominance charge is 41.5%.
The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it is best to conduct your individual analysis when making a call.
