Bitcoin (BTC) needs to maintain current levels and try to recover higher levels to avoid crashing into the $ 20,000 range, the latest analysis suggests.
Is $ 20,000 imminent?
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair still failed to consolidate the $ 30,000 support when Wall Street opened on May 16th.
The pair posted additional losses after the weekly close at $ 31,300 – a disappointment for market participants alone after sealing the seventh consecutive weekly red candle.
While the Luna Foundation Guard (LFG) indicated that it sold almost all BTC reserves during the collapse of Terra (LUNA) and TerraUSD last week, an understandable lack of future sales failed to lift market sentiment.
“ The next few days will be very important. Keep these levels, go up from here “, yes abstract the famous Phoenix trader in a Twitter message published during the day.
“If that fails, my eyes are on prices between $ 21,800 and $ 23,800. I was not hoping to keep them in mind again, lol. I was wrong to think that the 1st quarter structure was the beginning of a trend reversal. »
Phoenix is far from alone and predicts it will return to even lower levels than last week’s low at just under $ 24,000.
Reaching the consensus, another trader and analyst, Rekt Capital, also suggested that $ 20,000 would be an area of interest if current levels were not in place and buyers did not rise.
#BTC Monthly Timeframe
The price is backing up ~ $ 28800
In 2021, $ BTC long peaks of disadvantage have been created against this support, indicating strong buying interest here
– Rekt Capital (@rektcapital) May 16, 2022
#BTC Monthly Overview: The price is ~ $ 28,800 support. In 2021, $ BTC created long bearish peaks against this support, indicating strong interest from the buyer side. We’ll see if buyers show up soon as the next major monthly support will be ~ $ 20000 (orange) #Crypto #Bitcoin pic.twitter.com/TKcvFcSENh – Rekt Capital (@rektcapital) May 16, 2022
Last week ‘s movement, he addeda new trading range may have already been created for bitcoin, which is limited by the low end of its macro range at $ 28,800.
” If this happens, the low level of the macro range could push the price back again towards lower levels. “, He explained.
Meanwhile, some people remain cautiously optimistic about the short – term outlook, including Cointelegraph contributor Michaël van de Poppe.
” I’m not sure if we’ll get this test for about $ 28,400, but that’s a scenario I think “, is declared for Twitter followers.
“The crucial bullish breakout is $ 30,200. Overall, I expect a chase towards $ 32,800 for bitcoin. »
Bitcoin ‘synonymous with volatility’
At the macro level, the picture has remained broadly the same in recent weeks: stocks under pressure amid a sustained surge in US dollar strength.
Read also: First lost streak 7 weeks in history – 5 things to know about bitcoin this week
The US Dollar Index (DXY) broke through the 105 mark on May 13, and by May 16 it was trying to retry that level, which was rejected at the time.
The S&P 500 lost 0.65% on the day, while the Nasdaq 100 lost 1.3%.
Twitter stock made headlines again, this time underperforming technology stocks to trade at a lower price than it had achieved before Elon Musk announced its 9% bet and bid redemption.
For Mike McGlone, chief commodity strategist at Bloomberg Intelligence, comparisons were to be made to the dotcom bubble.
#Crypttanna vs. #Stockmarket: $ 1 Trillion Wipeout Vs. $ 20T – Crypto assets have been the main players for the past decade, and the trend is accelerating in the 2020s. The eruption of the internet bubble in 2000 was a reminder that emerging technologies / assets are consistent with volatility. pic.twitter.com/Jwxt6Yr8iG
—Mike McGlone (@ mikemcglone11) May 16, 2022
#Cryptos vs #StockMarket: $ 1 trillion wipeout vs $ 20 trillion – Crypto assets have been the top performers of the last decade, and the trend is accelerating in the 2020s. pic.twitter.com/Jwxt6Yr8iG – Mike McGlone (@ mikemcglone11) May 16, 2022
” If the tide of risky assets continues to beach, one of the best players in history – bitcoin – should be facing an appropriate medium reversal, but early adoption days may be in favor of emerging technology / assets. “, is writing in another tweet during the day.
“Bitcoin and the S&P 500 fell below the 100-week moving average. »
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and every trading operation involves risk, you should do your own research before making a decision.