Global financial markets were in turmoil as the Dow Jones saw a drop of 1,063 points and Bitcoin (BTC) price dropped to $35,571 on Binance. The pervasive weakness comes as traders have more time to digest the last half-point rate hike, the biggest since 2000, to beat the record high Fed’s inflation. So, what are the analysts saying about the last drop and what are their expectations? Here are the details…
Bitcoin price draws attention to the long term
According to independent market analyst Michaël van de Poppe, the area that defines bulls and bears hovers above or below $37,500. Michael van de Poppe said, “Then I assume we’re going to retest $39,000 as there is a big gap. Below $37,500, nothing to say about the bullish situation.” Rekt Capital has provided data on how Bitcoin is progressing on the monthly chart. The analyst posted the chart below identifying $38,400 as the new resistance level for the bulls and used the following expressions:
It would not be surprising to see volatility around the red throughout May. Monthly Close above the red is the most important thing to confirm the red retracement as support.
Will whales hold this key support level?
Data on how Bitcoin (BTC) whales behaved during recent market volatility was discussed by on-chain data firm Whalemap, stating that “the previous whale entries at $46,551 acted as correct resistance and a temporary mid-term peak for Bitcoin.” suggested. Whalemap used the following statements:
A similar resistance now emerged at $44,355 due to a similarly sized whale wallet. If BTC gets there, that should be our medium-term resistance.
The overall cryptocurrency market cap is currently $1.66 trillion and Bitcoin’s dominance rate is 41.5 percent. The largest cryptocurrency by market cap is changing hands at $36,442, down 7.9 percent. Cryptocurrencies such as Ethereum, BNB, XRP have also experienced a decrease of more than 5 percent.
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