Below $30,000, traders currently favor predicting bitcoin price action and this week’s sell-off will not slow down.
Bitcoin (BTC) set a new all-time low for 2022 on May 9 as cryptocurrency markets continued to sell off ahead of Wall Street’s opening.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
BTC price falls below $36,700
Data from Cointelegraph Markets Pro and TradingView confirmed a solid downtrend for BTC/USD, hitting $32,637 on Bitstamp.
After the last losing streak in May, the pair is still trading below $33,000 at the time of writing, with a weekly loss of now 15%.
“Bitcoin sweeping lows here, this is likely next liquidity,” Cointelegraph contributor Mikael van de Poppe told Twitter followers in one of several posts per day:
“We could go to $30k-$31k as it is a daily block but I would consider long positions in those regions.”
$30,000 is a popular bottom among commentators who nonetheless believe Bitcoin could drop to $25,000 or even lower.
This week’s contributors include Dylan LeClair, who identified Bitcoin’s strike price — the total amount each coin last moved — as a likely target.
“Bitcoin’s fall to the strike price (average value across the network) is entirely possible and consistent with previous market bottoms in bear market cycles,” he began on Twitter, explaining on May 9:
“The realized price is currently $24.3K.”
Leclerc added that such a capitulation is “unlikely” without the accompanying weakness in traditional markets. However, this year has provided such an impetus.
Bitcoin has gained some support around the 2022 lows while avoiding a deeper retest of levels not seen since last year.
“We are seeing a resurgence in bitcoin sales and the broader digital token market as the prospect of higher interest rates and a deteriorating economic environment continue to put pressure on risky assets,” meanwhile, analysts at major exchange Bitfinex told Cointelegraph in private comments.
“In Europe, stocks fell sharply after the Nasdaq suffered its biggest one-day loss since June 2020. Investors closing positions could amplify the ongoing sell-off we’ve seen over the past few days.”
LUNA stands out among altcoins
Against the backdrop of a rapid sell-off, altcoins also began to lose value.
Related: First 6-week losing streak since 2014 – 5 things to know about Bitcoin this week
1-day BTC/USD candlestick chart (Bitstamp). Source: Trade View
Ether (ETH) traded below $2,400 for the first time since Feb. 24, down 7% on the day, in-line with most of the top 10 cryptocurrencies by market cap.
The biggest weekly losses in the top ten were Terra (LUNA), which fell 27% on the controversy surrounding its TerraUSD (UST) stablecoin.
1-day LUNA/USD candlestick chart (Binance). Source: Trade View
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every step of investing and trading involves risk, you should do your own research when making a decision.
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