Cryptocurrency market weakness continues in May, as analysts suggest worsening sentiment and the FED could lead the Bitcoin (BTC) price to retest $28,000.
Shares of Bitcoin proponent companies sound alarm
At the beginning of May, continued weakness in crypto and equity markets was seen. Looking at the markets, there are no signs that could reverse the bearish trend in the short term. Equity markets are also bearish, and according to researcher Clara Medalie, the price of stocks of companies that invest in Bitcoin (BTC) has also taken a notable hit. Clara Medalie made the following statement:
Block, Tesla, Microstrategy and Coinbase fell between 20 and 50 percent.
Analyzing the data, it seems that Bitcoin (BTC) bulls’ attempt to rise above $39,000 was easily defended by the bears, resulting in a pullback to $38,200. Analysts gave their views on the current price action of BTC and what levels to watch out for in case of further declines. We convey the analyst opinions and details of Kriptokoin.com.
Current price action is similar to July 2021 price action: Trap setup!
According to independent market analyst Rekt Capital, watching a close above the 200-day exponential moving average (EMA) is an easy way to assess Bitcoin’s current weakness. The analyst described the metric as “an indicator of long-term investor sentiment towards Bitcoin” and said:
Since mid-2021, BTC has not held above the black 200-day EMA for very long. Every time BTC rises above the EMA, it will quickly lose and retrace lower as the support and pullback rate increases.
Another analyst, ‘Cantering Clark’, shared his predictions about what could happen next for BTC price and explained the difference between the current price action and BTC’s price action in July 2021. highlighted the similarities. Explaining his views, the analyst stated:
After similar strong selling patterns, as we saw in July 2021, after attempts to emerge upwards, the forms and lows of a longer-term horizontal range again began to be preferred. Possible trap setup.
Bitcoin accumulation continues
Senior market analyst Peter Brandt also shared his views and stated that if the current “bear channel” continues, Bitcoin price could drop to new lows. Brandt further added:
Completion of a bearish channel typically results in a drop equal to the width of the channel, or in this case a tough test of $32,000. My guess is $28,000.
Despite the current bearish trend, data from Glassnode shows that BTC accumulation continues to increase, Analysts finally said:
Long-term net position change panicked short-term owners suffered losses.
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