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.
Multiple 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.
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.
Nunya 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 price is trading below its 2-year moving average
The analyst said,
“It’s that time in the cycle again! Price has dropped below the 2yr MA. Accumulate.”
Whales wallets have been feasting
“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%.
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 conduct your own research when making a decision.