Bitcoin (BTC) fell further at the open on Wall Street on May 6 amid a warning that the US stock sell-off was “not over”.
Novogratz: “We are not going to have a soft landing”
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hitting $35,268 on Bitstamp, pushing three-day losses to 11.9%.
US stocks, which had seen a bloody May 5, were in no mood for a relief rally as the S&P 500 and Nasdaq 100 fell another 1% and 0.85%, respectively.
“The Nasdaq selloff is not over”Mike Novogratz, CEO of cryptocurrency merchant bank Galaxy Digital, told CNBC.
Commenting on the Fed’s plans for a “soft landing” in bringing inflation down to target, Novogratz warned that such a scenario would not come to pass.
As for bitcoin, comparisons have been made between the spot price action now and at the same time last year.
“It looks like BTC has turned the ~$38,000 level into a new resistance”, said popular trader and analyst Rekt Capital to his Twitter followers.
“Which now means… $BTC has confirmed a return to the $28,000 to $38,000 range, which was home to consolidation in Q1 and Q2 2021.”
Another tweet established that the BTC/USD pair was approaching a long-term support range, one that functioned as the second of two major weekly chart supports along with a higher low now missed.
#BTC you have lost one out of the two crucial Bull Market support levels:
• Macro Higher Low (black) ❌$BTC is slowly approaching a crucial demand area:
• Macro Range Low (green) ⏱️
This Range Low is what is supports a “Macro Re-Accumulation Range” thesis for #bitcoin#crypto https://t.co/3WmnTsCixL pic.twitter.com/6SMjrHziYg
— Rekt Capital (@rektcapital) May 6, 2022
BTC has lost one of two crucial Bull Market support levels:
• Macro Higher Low (black) ❌$BTC is slowly approaching a crucial demand area:
• Low Range Macro (green) ⏱️
This range low is what supports a “macro reaccumulation range” thesis for Bitcoin.
Altcoin Market Cap Warning
Meanwhile, altcoins saw mixed action as Bitcoin headed lower, but the overall picture looked bleak.
Ether (ETH) copied BTC/USD’s 11%-12% three-day losses, while other major altcoins managed to parry the blow slightly.
Nonetheless, the overall cryptocurrency market capitalization excluding Bitcoin approached major support on May 6.
Altcoins index is about to break the main support. Next support is 50% lower.
Real capitulation below this level. pic.twitter.com/wtXHPUkiI9
— il Capo Of Crypto (@CryptoCapo_) May 6, 2022
The altcoin index is about to break major support. The next support is 50% lower.
Real capitulation below this level.
Meanwhile, Bitcoin price targets remained focused on $30,000 and below this week.
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