Bitcoin continues to fall, and the price is now at its lowest since July of 2021. During that time, bitcoin was – briefly – trading at $29,000. This happened during the midway point of May 2022, though it appears the currency has shot back up to about $31,000 at press time.
As Bitcoin Crashes, Analysts Offer Technical Analyses
Scott Melker – a crypto investor and analyst – stated:
Bitcoin has fallen alongside global markets as traders and investors risk off in the face of recession and inflation concerns. Bitcoin dropped to below $30K, the tail end of which was largely the result of the Luna Guard Foundation dumping bitcoin on the market in a desperate attempt to fix the UST peg. This was insult to injury on a down day.
He also pointed out some technical aspects surrounding the asset, commenting:
The $30K psychological level remains important, although technically $33K is the area to watch for bulls to attempt to flip key resistance back to support.
Richard Usher – head of OTC Trading at BCB Group – also threw his two cents into the mix, mentioning:
Whilst the market has been fixated on a move below $30,000 in BTC being the key level, last night’s dip below was the fourth such move in the last 14 months. The key support for us is at $29,000, a break of which targets a move to $25,500 and ultimately the significant support at $20,000 which triggered the rally last year when it broke.
Julius de Kempenaer – senior tech analyst at StockCharts.com – said:
Since mid-February, BTC formed some intermediate support around $33-34K. Breaking that level downward yesterday opened the way to major support around $30K. That level is in play since the start of 2021 and should be considered a major support level. A clear break lower will free more downside risk as the next serious support level is only found near $20K which is the peak of 2017 and a cluster of smaller peaks/ highs in November 2020 just before the break that took BTC all the way to $65K. Breaking those support levels means that they will now come back as resistance and block BTC advances in the near term. The former support level in the $33-34K area is now the first resistance level to watch. Resistance levels are stacking up at $33,000, $34,700, and ultimately $40,000 which needs to be regained to call a longer-term low in place.
Will Some Crazy Moves Happen?
Collin Plume – CEO and founder of My Digital Money – mentioned:
There’s a possibility bitcoin could bounce around wildly in the next couple of months. In fact, I wouldn’t be surprised if another selloff happens to push it down. Investors are seeing the Fed interest rate hike, and all the uncertainties that come with it, as a buy opportunity. The next Fed meeting won’t be for another month, and we are certain another interest rate increase is coming.
