Monday, May 9, the crypto market continues to shed, threatening to carry on last week’s losing streak that has seen the entire crypto market slump to $1.46 trillion after a 9.80% decrease over the last day.
BTCUSD Chart by TradingView
As of writing, Bitcoin, which is also considered a direction front-runner for other cryptocurrencies is down 8.18% in the past 24 hours to $31,715. Ethereum has fallen 7.86% and currently trades at $2,331 after losing the $2,500 support on Sunday evening. Other top shedders include Shiba Inu (SHIB), AAVE, Cardano (ADA), and Polkadot (DOT) which have lost, 17.5%, 17.43%, 15.31%, and 17% respectively in the past 24 hours.
Stocks, Equities Market Woes To Blame
That said, some experts have warned that the continued gains by the US Dollar Index (DXY) could throw Bitcoin, Ether, Cardano, Solana, Shiba Inu, and other cryptocurrencies into a further correction. Others believe traditional risk markets are calling the shots.
“Nasdaq 100 once again fell for the fifth consecutive week. The crypto markets have been moving in lock-step with the equities market, and what we are seeing right now is investors treating BTC as a risk-on asset.” Darshan Bathija Co-founder and CEO of Singapore-based crypto platform Vauld said. “In light of fears of rising inflation, most investors have taken a risk-off approach by selling stocks and cryptos alike to cut down risk,” he added.
Bitcoin To $28,000? No, Wait A Minute
Technically, others like veteran trader Peter Brandt believe Bitcoin could slump lower after failing to hold above key support levels. In a Monday tweet, the pundit stated that Bitcoin would most likely find support at $30,000 “now that $28,000 is so widely accepted as a downside target.”
On May 1st, Brandt sketched out a bear channel after which he had projected the price would drop to $28,000 should a textbook play pattern unfold. Today, he seemed to have reevaluated his stance, defending his reviewed support target with the statement, “buy when everyone else is selling, sell when everyone else is buying.”
According to on-chain analytics firm Santiment, last week’s sell-off was critically important in weeding out paper hands and could bring the much-needed lift-off for BTC’s price.
Also, considering that the current dip has seen a meteoric surge in the number of new addresses buying up BTC with HODLers stashing their bags at unprecedented rates, experts believe that this could give BTC the much-needed strength to push its price out of the woods.
That said, Bitcoin is staring at the imminent risk of plunging to the $28,000 range, despite the weekly stochastic falling deep into the oversold territory. The trader sentiment index is also signaling “extreme fear” – we all know what usually ensues after this happens- price rebounds.