Bitcoin (BTC) failed to reach $31,000 ahead of the Wall Street open on May 13 as new warnings forecast a continuation of the slide.
The dollar falls and stocks bounce at the end of the week
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair consolidating after hitting just under $31,000 earlier in the day.
US stock markets saw some relief, with the S&P 500 up 2.2% and the Nasdaq gaining 3.3% at the open.
The most conspicuous exception was shares of Twitter, which at the time of writing were down 7.7% on the day, thanks to Elon Musk delaying his takeover bid.
Parallel to renewed strength in equities came a drop in the US dollar, with the US Dollar Index (DXY) coming off new twenty-year highs to drop 0.2%, traditionally a boon for Bitcoin and risk assets in general.
$DXY – Finally showing some sort of chance for a pullback. This would help #bitcoin and #stocks. Still early to tell but it’s better than seeing another green candle. pic.twitter.com/WZ3vSUwZsd
—IncomeSharks (@IncomeSharks) May 13, 2022
$DXY – finally showing some sort of retracement possibility. This would help #Bitcoin and #stocks. It’s still early to tell, but it’s better than seeing another green candle.
As optimism around Bitcoin slowly returned amid the LUNA de Terra blowout, some sources still argued that it was far from guaranteed that a deeper drop in BTC price would be avoided.
Among them was the on-chain analytics platform Material Indicators.
“This BTC rally could continue, but before you go into FOMO, ask yourself what has fundamentally changed,” He said in part of his latest Twitter update.
“IMO, the macro bottom is not in yet.”
An accompanying chart of the order book from major exchange Binance showed moderate support below the spot price, however this is little compared to the main wall at this week’s lows of $24,000.
Equally cautious was the popular HornHairs trading account, which demanded a rally of up to $50,000 on the weekly chart to avoid a capitulation event.
“Until then, there is a real chance that we could take a nose dive and technically bounce for a few weeks on another dip to $20,000 per accretion.”, He said a recent tweet.
As Cointelegraph reported, another theory suggested that to preserve its tradition of 80% declines from all-time highs, the BTC/USD pair would need to plunge to just $14,000.
Hayes: I would buy Bitcoin at $20,000, Ethereum at $1,300
As the dust settled on the markets this week, another voice reiterated their existing concerns about a further crash to come.
In his latest blog post, Mainly concerned about the LUNA phenomenon, Arthur Hayes, former CEO of crypto derivatives platform BitMEX, asked for $20,000.
“Let crypto capital markets heal after the bloodletting is over. So trying to imagine legitimate price targets is absurd. But I will say this: given my macro view on the inevitability of more money being printed, I will close my eyes and trust in the Lord,” he wrote.
“So, I am a buyer of Bitcoin at the $20,000 level and Ether at the $1,300 level. These levels roughly correspond to the all-time highs for each asset during the 2017/18 bull market.”
Hayes had already forecast $30,000 to hit in June, before this week’s shakeout. In the long term, however, he had also told readers to prepare for a long period of pain in both crypto assets and stocks.
By 2030, he said, Bitcoin should cost “millions” of dollars.
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