Bitcoin’s price fell below $4,000 for the first time since early August as cryptocurrency markets slumped to a seven-month low. Trading on major exchanges was halted throughout Thursday after technical problems caused long delays that depleted liquidity and precipitated steep declines in the crypto market.
The “djia futures” is a cryptocurrency that has seen a drop of over 1,000 points in the market. The Dow Jones Industrial Average has also had its worst trading day since 2020.
On May 5, global financial markets were in chaos as the Dow Jones fell 1,063 points and the price of Bitcoin (BTC) dropped to $35,571 on Binance.
The general downturn comes as markets have had more time to process the Federal Reserve’s recent half-point interest rate rise, the highest since 2000, which was implemented in an effort to contain record high inflation.
According to data from Cointelegraph Markets Pro and TradingView, BTC’s noon drop corresponded with a sell-off in the IT sector that lasted until the conventional markets closed.
1-day chart of BTC/USDT. TradingView (source)
Here’s what market experts are saying about Thursday’s market crash and where the price of Bitcoin may go in the near future.
Bears have the upper hand until $37,500 is restored.
1-hour chart of BTC/USDT. Twitter (source)
A closing above or below $37,500, according to independent market expert Michal van de Poppe, distinguishes bulls and bears.
According to Van de Poppe,
“I’m guessing we’ll test $39,000 again since there’s such a large difference.” Nothing to say regarding bullish outlook around $37,500.”
Analysts advise focusing on the weekly rather than the daily.
Market analyst and pseudonymous Twitter user ‘Rekt Captial’ gave insight into how Bitcoin is doing on the monthly chart, posting the chart below, pinpointing $38,400 as the next resistance level for bulls.
1 month BTC/USD chart. Twitter (source)
According to Rekt Capital,
“I wouldn’t be shocked if there was a lot of volatility around red in May.” The most crucial factor in confirming a recapture of red as support is a monthly close above red.”
Bitcoin price falls to 10-week lows as $40K rise turns into ‘nasty bull trap’
Will whales be able to maintain this crucial support level?
Whalemap, an on-chain analytics provider, reviewed statistics on how Bitcoin whales have been acting amid recent market turbulence, claiming that “prior whale inflows around $46,551 were functioning as an accurate barrier and a temporary mid-term peak for Bitcoin’s range.”
Large Bitcoin wallet inflows Twitter (source)
According to Whalemap,
“Now, because to a comparable huge whale wallet, a similar barrier has emerged at $44,355. If BTC reaches there, this should be our mid-term barrier.”
The total cryptocurrency market capitalization is currently $1.66 trillion, with Bitcoin commanding 41.5 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
The “nasdaq today” is a stock market index that tracks the performance of 30 large-cap technology stocks. The Dow Jones Industrial Average, which includes 30 large-cap U.S. stocks, dropped 1,000 points on Tuesday, marking its worst trading day since 2020.
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