Bitcoin (BTC) closed the week again with a red candle, now even for the sixth week in a row, the longest since 2014. The fear on the cryptocurrency market continues to grow, and sentiment is meanwhile very bearish to become. Investors are trying to aim for a bottom, but how far can the price fall?
Bitcoin Fear and Greed Index is 11 — Extreme Fear
Current price: $34,041 pic.twitter.com/PQK3x6YMok— Bitcoin Fear and Greed Index (@BitcoinFear) May 9, 2022
Bitcoin price drops by 3%
From bitcoin price touched just under $40,000 last Thursday, shortly after the Federal Open Market Committee (FOMC) meeting. However, then bitcoin started to fall hard, along with the stock markets. The price came in around $34,500 yesterday and briefly dipped below $34,000 last night.
Bitcoin first made a small bounce back to $34,600, but that was short-lived. Bitcoin dropped towards $34,000 last night and made another big plunge by 4 a.m. This time, bitcoin touched a low of $33,200, almost as low as the dip at the end of January.
Bitcoin also came close to this low again this morning. Currently the price is $33,650 on KuCoin and €32,000 on Battle† Bitcoin is currently 3% in the min.
How deep is the bitcoin bottom?
How deep bitcoin will fall in the near future seems to depend mainly on where the so-called macro bottom is. If the downward trend on the stock markets continues, then bitcoin will most likely follow in the near term.
It is possible that bitcoin will soon find a bottom, because it succeeded around this price at the end of January. However, this time the fear is even higher and there is still a lack of retail volume so we don’t have a real rebound see.
Incidentally, the next American Consumer Price Index (CPI) will be published next Wednesday. How inflation can cause even more fear and volatility.
As bitcoin has broken through a critical support barrier, the price could potentially retest the area between $28,000 and $30,000, as it did last summer.
#Bitcoin has broken below the critical support level. As I mentioned previously, this drastically increases the odds that we retest the lower-bound of the white consolidation range.
That would put us between $28.9k-$30.2k.
Not what you want to hear, but what we must accept. pic.twitter.com/xuFL0L9yPp
— Caleb Franzen (@CalebFranzen) May 8, 2022
Opinions are strongly divided as to how deep bitcoin can still fall. This is also reflected in the following poll on Twitter. Currently, 28% hope we are already there, but almost 30% expect the price to fall below $32,000. 17% even expect bitcoin to fall below USD 28,000 and a whopping 26% fear a dip below USD 24,000.
Where do you ultimately think $BTC bottoms?
— Daan Crypto Trades (@DaanCrypto) May 8, 2022
Not everything is bearish for bitcoin
Despite this, not everything looks completely bearish. There is also positive on-chain find dates. For example, the percentage of BTC that has not moved for at least a year is now at a all-time high of 65%, a bullish sign in the long run.
The #Bitcoin supply last active 1+ yrs ago, now at 65.138% and rising.
Fundamentals continue to strengthen. 🦾
However, remember, in the current environment they don’t have to translate into price, but they might be the reason that the $BTC price is holding up relatively well. pic.twitter.com/Glj1V1JqrZ
— Jan Wüstenfeld 🇺🇦 (@JanWues) May 8, 2022
The number also remains long positions on Bitfinex still increasing:
Bitfinex longs swiftly approaching levels as high as when we exited the summer range.
Which side of the trade do you want to be on anon?$BTC pic.twitter.com/QBNtcJdnPo
— Miles J Creative (@JohalMiles) May 8, 2022
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If you are looking for deep value with respect to the trend then #Bitcoin is a steal right now.
The BTC multiple over its 200 days moving average has only been lower 10% of the time since the 1st halving. pic.twitter.com/XLXlCcODsV
— ecoinometrics (@ecoinometrics) May 9, 2022
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