With the sell-off continuing this week, traders’ favoured projection for Bitcoin price action is now below $30,000. On May 9, Bitcoin (BTC) established a new record low price for 2022 as crypto markets continued to sell off ahead of the opening of Wall Street.
Bitcoin’s price has dropped below $36,700
The decisively negative achievement for BTC/USD, which touched $32,637 on Bitstamp, was corroborated by data from TradingView. With the latest drop in a spate of losses in May, the pair was trading under $33,000 at the time of writing, with weekly losses now at 15%.
“Bitcoin sweeping the lows here, that’s definitely next liquidity,” A trader wrote on Twitter earlier in the day:
“As a daily block, we could go around $30-31Kish, but I’d be looking at longs in these areas.”
Despite the fact that $30,000 is a popular floor level among pundits, some fear Bitcoin might fall below $25,000 or even lower.
28.8k incoming https://t.co/FC7EZABqgD
— Matthew Hyland (@MatthewHyland_) May 9, 2022
Dylan LeClair, who highlighted Bitcoin’s realised price — the sum at which each coin last changed — as a possible objective this week, is one of them.
On May 9, he launched a Twitter discussion by stating: “A bitcoin fall down to it’s realised price (average on-chain cost basis) is perfectly plausible and has been consistent with past market bottoms in bear market cycles.”
“At the present, the realised price is $24.3k.”
Without concurrent weakness in traditional markets, such a capitulation would have been “unlikely,” according to LeClair. This year, on the other hand, has provided exactly that impetus.
Going back to December, I outlined this possibility and prefaced it with the opinion that it's unlikely to occur unless a significant liquidity crises emerged in legacy markets.
Well, it looks like we're getting one.
Stay safe out there.
— Dylan LeClair 🟠 (@DylanLeClair_) May 9, 2022
Bitcoin found some support near the 2022 lows, avoiding a retest of levels not seen since last year.
In private comments, analysts at major exchange Bitfinex told that “we’ve seen fresh selling in Bitcoin and the wider digital token market as the threat of increasing interest rates and a deteriorating economic environment continues to weigh on risk assets.”
“Equities are substantially lower in Europe, following the Nasdaq’s biggest one-day drop since June 2020. Exiting holdings by investors could be adding to the protracted sell-off we’ve seen over the last few days.”
LUNA stands apart from the crowd of altcoins
Altcoins began to lose considerable value as the sell-off intensified.
For the first time since February 24, Ether (ETH) fell below $2,400, falling 7% on the day, in line with the bulk of the top 10 cryptocurrencies by market cap. Terra (LUNA) had the biggest weekly drop in the top ten, falling 27% as a result of the debate surrounding the TerraUSD (UST) stablecoin.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.