May 6 brings more trouble for both crypto and stocks as traders still see no sign of an imminent recovery rally.
Bitcoin (BTC) continued to fall as Wall Street opened on May 6, amid a warning that the sell-off in US stocks was “not over yet.”
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trade View
Novogratz: We will not have a soft landing
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $35,268 on Bitstamp, resulting in just a three-day 11.9% loss.
US stocks, having weathered the bloody May 5, are unlikely to rebound in relief as the S&P 500 and Nasdaq 100 fell another 1% and 0.85%, respectively.
“The Nasdaq sell-off isn’t over yet,” Mike Novogratz, CEO of cryptocurrency trading bank Galaxy Digital, told CNBC.
Commenting on the Federal Reserve’s “soft landing” plans to bring inflation down to its target, Novogratz warned that such a scenario would not materialize.
At the same time, bitcoin has been seeing comparisons between the spot price now and the same time last year.
“It looks like BTC turned the ~$38k level into new resistance,” the popular trader and analyst at Rekt Capital told Twitter followers.
“Now what does that mean… BTC has confirmed a return to the $28k-$38k range which has been the site of consolidation in Q1 and Q2 2021.”
Another tweet noted that BTC/USD is approaching a long-term support area that, along with the already lost higher low, acted as the second of two key support levels on the weekly chart.
Altcoin Market Cap Warning
Meanwhile, altcoins saw mixed action as Bitcoin declined, but the overall picture looked bleak.
Related: Down-channel patterns and weak futures data continue to weigh on Ethereum price
Ether (ETH) copied 3-day losses of 11-12% on BTC/USD, while other major altcoins managed to stem the blow a bit.
Hourly candlestick chart ETH/USD (Bitstamp). Source: Trade View
However, on May 6, the total cryptocurrency market cap, excluding Bitcoin, was nearing serious support.
Meanwhile, this week’s Bitcoin price targets remain centered at $30,000 and below.
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