Bitcoin´s price jumps and declines are limited
By Noemi Jansana / Alejandra Zamora
Date: Tuesday 24 May 2022
(Sharecast News) - Bitcoin´s (BTC) been clearly encapsulated in a narrow trading range for a little over a week now, with a very clear resistance level at $30,500/$30,600 and support around $28,500, where buying comes in again and again on the digital asset. After a weekend at the bottom of this channel, the cryptocurrency tried to break above $30,600 on Monday, but failed to clear this area, and so it falls back to $29,000. Without clear catalysts, the bulls are losing steam to continue the rallies.
The price has returned below the 100-hour simple moving average and "from a technical point of view, we remain in a key area for BTC delimited by $29-$30,000," stated Javier Molina, spokesman for eToro in Spain. "The high level of pessimism continues despite the fact that, on the derivatives market side, there is some consolidation and a slight turnaround in sentiment. For the moment, losing $29,000 would mean going after the $25,000 lows," the expert explained. "That area now marks the first of the relevant floors for BTC and below, we would go straight to $20,000," warned Molina. "However, in the event of managing to recover $34,000, things could change and look for areas at $38,000," the expert indicated.
"We are currently in oversold conditions, as Bitcoin has not seen significant relief since the 38% drop from $40,000 to around $25,500," commented Marcus Sotiriou, analyst at GolbalBlock. "Bitcoin has printed a higher high and higher low on the 4-hour time frame, which is a bullish indicator for upside continuation," he added.
PESSIMISTS ARE EYEING $8,000
Longer term, more than a few analysts are expecting larger declines for the cryptoasset. The technical analysis of César Nuez, Bolsamania's expert, already indicated the formation of a double top, with frightening consequences for the coming months, and the target for the fall of the figure could easily be at $8,000. This line of thinking is supported by Scott Minerd, chief investment officer at Guggenheim, who predicted a decline in the BTC price to $8,000 from its current levels. During an interview at the World Economic Forum in Davos with CNBC, Minerd believed this is the fate of the crypto following BTC's recent move below $30,000.
"When it breaks below $30,000 consistently, $8,000 is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive," he commented. The prediction would cause even more pain for the cryptocurrency market, which has lost about $500 billion in value in the past month and is hovering around $1.26 trillion. In the last 30 days alone, Bitcoin is down around 24%.
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