CoinShots Logo
Bitcoin Dropped To $35.5K As 1,000 Point Dow Correction Marked The Worst Trading Day Since 2020
BTC and ETH price imploded toward swing lows as the Dow tumbled by 1,000 points and the Nasdaq lost 5%, marking the worst trading day for stocks since 2020.
Muskaan T.
5:16 6th May, 2022
Markets

Global financial markets plunged into disarray on May 5 as the Dow Jones saw a 1,063 point drop and Bitcoin (BTC) price plummeted to $35,571 on Binance.

The widespread weakness comes as traders have had more time to digest the recent half-point interest rate hike by the Federal Reserve, the largest hike since 2000, which was done in an attempt to corral record high inflation.

Data from TradingView shows that the midday dump in the price of BTC coincided with a sell-off in the tech sector, which escalated into the close of the traditional markets.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what market analysts are saying about May 5's market rout and what levels Bitcoin price could drop to in the near term.

Bears rule until $37,500 is reclaimed

BTC/USDT 1-hour chart. Source: Twitter

According to independent market analyst Michaël van de Poppe, the zone that defines bulls and bears is a close above or below $37,500.

Van de Poppe said,

“Then I'm assuming we'll test $39,000 again as there's a big gap in between. Under $37,500, nothing to say about bullish perspectives.”

Analysts say forget the daily and focus on the weekly

Insight into how Bitcoin is faring on the monthly chart was provided by market analyst and pseudonymous Twitter user Rekt Captial, who posted the following chart identifying $38,400 as the new resistance level for bulls.

BTC/USD 1-month chart. Source: Twitter

Rekt Capital said,

“Wouldn't be surprised to see volatility around red throughout May. Monthly Close above red is what's most important to confirm a reclaim of red as support.”

Data on how Bitcoin whales have been behaving during the recent market volatility was discussed by Whalemap, an on-chain data firm, which suggested that the “previous whale inflows at $46,551 were serving as an accurate resistance and a temporary mid-term top for Bitcoin’s range.”

Bitcoin large wallet inflows. Source: Twitter

Whalemap said,

“Now a similar resistance has appeared at $44,355 due to a similar sized whale wallet. This should be our mid-term resistance if BTC gets there.”

The overall cryptocurrency market cap now stands at $1.66 trillion and Bitcoin’s dominance rate is 41.5%.

Source



CoinShots Logo

Social

Get in touch:

© 2022 Coinshots (AtlasZero LLC). All rights reserved.