Sentiment in the cryptocurrency market dipped further on May 9 as an escalation in the ongoing sell-off intensified with bears pushing Bitcoin (BTC) to $30,334, its lowest price since July 2021.
Multiple factors, such as rising interest rates, the end of easy money policies by the Federal Reserve, declining stock prices, and concerns related to Terra’s UST stablecoin holding its peg to $1 is affecting sentiment within the cryptocurrency market.
Data from Cointelegraph Markets Pro and TradingView shows that an afternoon of heavy selling on May 9 hit BTC price to a daily low of $30,334 as bulls frantically regrouped to defend the psychologically important $30,000 price level.
Here’s a look at what various analysts are saying about Bitcoin’s forward prospects, along with some insight into how BTC whales are reacting to recent price action.
Has a bear market started?
The possibility of a strong sell-off was discussed before Monday’s move by analyst and pseudonymous Twitter user ‘Nunya Bizniz’, who public the chart below highlighting a potential capitulation zone for Bitcoin.
Nunya Bizniz said:
“This 8-year-old parallel channel has four perfect touches. Will there be another capitulation spike low inside the yellow circle, between red and blue, lining up with the previous all-time high?
According to the graph provided, BTC price could drop to as low as $19,891 if such a scenario came to pass.
One way or another, what comes next for BTC is likely to ripple across the entire crypto market as the current losing streak approaches record territory, as noted by pseudonymous Twitter user, ‘Bitcoin Archive’.
#bitcoin went down 6 weeks in a row for just the second time ever.
It has never had 7 red weeks in a row. pic.twitter.com/NNXuQUHQC9
—Bitcoin Archive (@BTC_Archive) May 9, 2022
Bitcoin price is trading below its 2-year moving average
A more positive version of the recent weakness was offered by cryptanalyst Philip Swift, who public the chart below that analyzes the price of BTC in relation to its 2-year moving average (MA).
The analyst said:
“It’s that time in the cycle again! The price has fallen below the 2-year MA. Accumulate.”
The whale bags have been partying
According to Twitter cryptanalyst Akash, Bitcoin whales have been accumulating through previous downturns and sideways price action.
Akash said:
“Wallets holding between 10,000 and 100,000 BTC have been on a buying spree since April 30.”
While this data is encouraging on some levels, It is important to remember that there is no guarantee against another trend reversal or further decline and traders would be wise to assume nothing and take special care to manage their risk going forward.
The total cryptocurrency market capitalization currently stands at $1.411 trillion and the dominance ratio of Bitcoin is 41.5%.
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.
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