The latest analysis warns that Bitcoin (BTC) should hold current levels and attempt to retrace higher levels to avoid a collapse in the $20,000 range.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD still failed to consolidate $30,000 as support at the May 16 Wall Street open.
The pair saw fresh losses following the weekly close at $31,300 – which on its own left market participants disappointed after closing a seventh consecutive record-breaking weekly candle.
Even though the Luna Foundation Guard (LFG) announced that it sold almost all of its BTC reserves during last week’s Terra (LUNA) and TerraUSD meltdown, the lack of future sales did not lift the mood in the markets.
Popular trader Phoenix said, “The coming days are going to be crucial IMO. Keep these levels, go higher from here” summarized in a Twitter post a day.
Phoenix isn’t alone in predicting a return to even lower levels from last week’s low just below $24,000.
Rekt Capital, the other trader and analyst involved in the consensus, likewise pointed out that $20,000 is an area of interest if current levels fail to hold and buyers fail to materialize.
#BTC Monthly Timeframe
Price is at ~$28800 support level
in 2021 $BTC formed long negative wicks against this support, indicating strong buyer interest here
— Rekt Capital (@rektcapital) 16 May 2022
last week’s action AdditionalIt may have already set a new trading range for Bitcoin by setting the low macro range of $28,800 as the ceiling.
“If that is the case, the Low Macro Range could turn into resistance to reject the price lower again,” he explained.
Meanwhile, some, including Cointelegraph contributor Michaël van de Poppe, remained cautiously optimistic about short-term prospects.
“I’m not sure if we can get this test around $28.4k, but that’s a scenario I’m looking at.” said Twitter followers.
“The key bullish breaker is $30.2k. Overall, we expect to continue at $32.8k for Bitcoin.”
At the time of writing, BTC/USD was trading at around $29,300 on Bitstamp.
Bitcoin “synonymous with volatility”
On the macro, the picture has remained broadly similar to recent weeks: equities are under pressure amid a continued rise in US dollar strength.
Related: First 7-week losing streak in history – 5 things to know in Bitcoin this week
The US dollar index (DXY) hit 105 on May 13 and as of May 16 it was attempting to retest this level, which was rejected at the time.
The S&P 500 fell 0.65% in the day, while the Nasdaq 100 lost 1.3 percent.
Twitter stock made the headlines again, this time with underperforming tech stocks trading at a lower price than before Elon Musk announced his 9% stake and takeover bid.
For Mike McGlone, chief commodity strategist at Bloomberg Intelligence, there were comparisons to be made with the dotcom bubble.
#Crypto etc. #Exchange: $1 Trillion Wipe vs. $20 Tons – Cryptoassets have performed the best in the last decade and the trend is accelerating in the 2020s. The internet bubble that burst in 2000 reminded us that emerging technologies/assets are synonymous with volatility. pic.twitter.com/Jwxt6Yr8iG
– Mike McGlone (@mikemcglone11) 16 May 2022
“If the risk-asset tide continues to subside, Bitcoin – one of the best performers in history – will face a decent average return, but days of early adoption may support the emerging tech/asset,” he said. Wrote in another tweet during the day.
“Both Bitcoin and the S&P 500 have dropped below their 100-week moving averages.
The views and opinions expressed here are those of the author alone and may not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.