As Bitcoin struggles to hold onto the $30,000 mark, the crypto market has recorded a drop in investor confidence. The crypto market has been on a roll with the popular Bitcoin recording the lows of $26,000 and Terra’s stablecoin UST nearly being wiped out.
BTC’s recent low represented a test of the 23.6% retracement of a historical appreciating range from the $15,708 – $28,387 level. It also rose above the $24,365 area – a downside price objective related to selling pressure that emerged around the $48,240 area. Buying pressure was observed. It pushed Bitcoin to the $30,990 area before momentum stalled. This was seen just below the 76.4% retracement of the appreciating range from $21,913 – $61,788.
Analysts believe that if Bitcoin continues with its downward trend, there are downside price objectives around the $25,142, $24,365, and $21,074 areas. Traders will see significant selling pressure heightened around $31,717, $31,364 and $31,289 areas. And there are upside technical price objectives and retracement levels related to historical buying pressure around the $38,000 level.
Over the past couple of weeks, adverse price developments led to lower weekly closes for BTC for six weeks in a row. This wasn’t seen in nearly eight years. The past seven days have seen high volatility unlike anything before. Worst trading was observed on May 12 when Bitcoin plunged just below $30,000 to its lowest price level, which was last seen in December 2020 at $25,300. Analysts attributed the price slump to the Luna Foundation Guard (LFG) selling 80,081 Bitcoin – around 99.6% of their position. LFG released details on May 16 about the remaining crypto collateral. From one side, the project’s sell-off risk has been eliminated but investors have raised concerns about the stability of other stablecoins and their DeFi applications.
Meanwhile, Bitcoin is changing hands at $30,271, while Ether is desperately trying to hold onto the $2,000 mark, as per data from CoinMarketCap. It has been down by 0.42% in the last 24-hours and is trading at $2,066. The altcoins have seen a mixed price reaction. There have been slight price gains and dips.