With a 20% drop from its most recent peak, the S&P 500 now meets the definition of a bear market zone as a warning sign for Bitcoin and altcoins.
Bitcoin price reflects stock performance
Data from TradingView showed that BTC price dropped below $28,700 over the weekend, then added around $500. It appeared to be in tight range at the time of writing, after US stock indexes saw the last trading day of the week volatile, down 4.7% from the previous day’s high of $30,700. The S&P 500, which managed to reverse after initially falling at the open, was trading 20% below last year’s highs, confirming bear market trends.
Analysts rank these levels
As
quoted by Kriptokoin.com, various sources have called for Bitcoin to drop once again, similar to last week’s capitulation event. For example, Twitter analyst PlanC argues that external shifts could push Bitcoin down significantly from current levels:
If the crypto market were in a bubble, I would say the Bitcoin floor is between $25,000 and $27.5k, but macro factors put us 22-24. There is a reasonable possibility that he will withdraw a thousand dollars. Significant black swan, 15-20k becomes a possibility.
Beyond equities, the US dollar index (DXY) consolidated after a strong pullback from a two-year high.
May could compete with 2021 for worst period
Ten days to the end of the month, BTC risks May 2022 to be the worst in its history in terms of returns left it across. Data from on-chai data source Coinglass currently shows total monthly returns of -22% for Bitcoin, the largest pullback of any year except the 2021s -35%. As the aggregated figures confirm, 2022 was also the worst-performing top five months of the year for Bitcoin since 2018.
Elsewhere, popular crypto analyst Michaël van de Poppe says he expects “green numbers for Bitcoin” next week. Crypto Tony pointed out that the up and down targets are around $27,900 and $31,000, respectively.
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