Bitcoin (BTC) lost bullish momentum at the Wall Street open on June 1, as US stocks faced another down day.
“Nothing” has changed in the big picture
Data from Cointelegraph Markets Pro and TradingView captured a sharp U-turn for the BTC/USD pair early in the day, shedding $1,600 in three hours.
At the time of writing, the pair was trading around $30,400, giving back the gains of the past few days.
For Cointelegraph contributor Michaël van de Poppe, the $29,000 level was now on the radar after support levels failed to cushion the initial drop in Bitcoin price.
“Very simply, Bitcoin needs to hold here to get back to the $33,000 area possibly,” tweeted when the BTC/USD pair hit $31,150.
“If not, it’s going to plummet very quickly to the $29,000 range.”
The downside mood surprised hardly anyone, despite the recent show of strength and rally to two-week highs.
For the popular Twitter account Crypto Tony, targets beyond the short term held firm, targeting $22,000.
My target has been $22,000 – $24,000 for nearly two months now and that isn’t changing due to this small pump. Zooming out what has changed.. Nothing pic.twitter.com/eKNAyT2pO3
— Crypto Tony (@CryptoTony__) June 1, 2022
Blake, another popular Twitter account dedicated to Bitcoin analysis, pointed to the current weakness in stocks, with which BTC has been highly correlated, as a sign not to believe that crypto assets have bottomed out.
“This SPX situation is a big part of why I don’t see this as a ‘buy the dip’ time for cryptocurrencies and Bitcoin,” said to his followers that day.
“I’m going to let the markets do their thing for a while…”
The S&P 500 was trading down 1.1% after the first three hours of trading, as was the Nasdaq index.
The halving hopium is served
Meanwhile, Filbfilb, co-founder of the Decentrader trading team, tries to find some more positive chart traits and points out the historical patterns seen during Bitcoin halving cycles.
The current price, he said, follows Bitcoin’s lifelong trend, hinting that the familiar “pain before gain” scenario is now playing out as well.
If the BTC/USD pair had reached its furthest point from its 2020 halving price, he analyzed, then it would have about six more months of bearish behavior before recovering at the next halving, scheduled for May 2024.
End of bear correction on the same basis would be pre 2024 halving meaning not done until Q1 2023.
After which the cycle would look like this assuming we hit the bottom returns off the previous cycle like mentioned above sometime in 2025.https://t.co/3IqwyDs88c
— filbfilb (@filbfilb) June 1, 2022
However, Filbfilb warned that the theory was more “hopium” than an actual prediction.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.