Sentiment across the cryptocurrency market plunged even deeper 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.
Crypto Fear & Greed Index. Source: Alternative.meMultiple factors like rising interest rates, the end of easy money policies by the Federal Reserve, declining stock prices and concerns related to Terra’s UST stablecoin maintaining its $1 peg are all impacting sentiment within the crypto market.
Data from Cointelegraph Markets Pro and TradingView shows that an afternoon of heavy selling on May 9 hammered the price of BTC to a daily low of $30,334 as bulls frantically regrouped to defend the psychologically important $30,000 price level.
BTC/USDT 1-day chart. Source: TradingViewHere’s a look at what several analysts are saying about the outlook for Bitcoin moving forward, along with some insight into how BTC whales are reacting to the recent price action.
Has a bear market started?
The possibility of a strong sell-off was discussed prior to Monday’s move by analyst and pseudonymous Twitter user ‘Nunya Bizniz’, who posted the following chart highlighting a possible zone of capitulation for Bitcoin.
BTC/USD 1-week chart. Source: TwitterNunya Bizniz said,
“This 8-yr parallel channel has four perfect touches. Will there be another capitulation spike low within the yellow circle, between red and blue, aligning with the prior all-time high?Based on the chart provided, the price of BTC could drop as low as $19,891 if such a scenario played out.
One way or another, what comes next for BTC is likely to ripple across the cryptocurrency market as the current streak of losses is nearing record-breaking 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, 2022Bitcoin price is trading below its 2-year moving average
A more positive take on the recent weakness was offered by crypto analyst Philip Swift, who posted the following chart looking at the BTC price relative to its 2-year moving average (MA).
Bitcoin 2-year MA multiplier. Source: TwitterThe analyst said,
“It's that time in the cycle again! Price has dropped below the 2yr MA. Accumulate.”Related: Bitcoin price falls to $31K as traders prepare for a ‘rocky’ road and more downside
Whales wallets have been feasting
According to Twitter crypto analyst Akash, Bitcoin whales have been accumulating through the previous downturns and sideways price action.
BTC price vs. wallets holding 10,000 to 100,000 BTC. Source: TwitterAkash said,
“Wallets holding 10,000 to 100,000 BTC have been on a buying spree since April 30.”While this data is encouraging on some levels it's important to remember that there are no guarantees against another trend change or further downside and traders would be wise to assume nothing and take extra care to manage their risk moving forward.
The overall cryptocurrency market cap now stands at $1.411 trillion and Bitcoin’s dominance rate is 41.5%.
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