Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

Published at: May 16, 2022

Bitcoin (BTC) needs to hold current levels and work to reclaim higher ones to avoid a crash in the $20,000 range, the latest analysis warns. 

Is $20,000 incoming?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD still failing to cement $30,000 as support on the May 16 Wall Street open.

The pair had seen fresh losses after the weekly close at $31,300 — this, in itself, disappointing market participants after sealing a record seventh consecutive red weekly candle.

Even as the Luna Foundation Guard (LFG) revealed that it had sold almost all of its BTC reserves during last week's Terra (LUNA) and TerraUSD meltdown, the implied lack of future selling failed to lift the mood on markets.

"Coming days going to be very important IMO. Keep these levels, grind higher from here," popular trader Phoenix summarized in a Twitter post on the day.

"If it fails, my eyes are on $21.8K–$23.8K. Didn't expect to keep those in mind again, lol. I was wrong thinking Q1 structure was a trend reversal start."

Phoenix is far from alone in forecasting a return to levels even lower than last week's floor at just under $24,000.

Joining the consensus, fellow trader and analyst Rekt Capital likewise pointed to $20,000 being an area of interest should current levels fail to hold and buyers not materialize.

#BTC Monthly TimeframePrice is at ~$28800 supportIn 2021, $BTC formed long downside wicks against this support, indicating strong buy-side interest hereLet's see if buyer's show up soon because next major Monthly support lower down is at ~$20000 (orange)#Crypto #Bitcoin pic.twitter.com/TKcvFcSENh

— Rekt Capital (@rektcapital) May 16, 2022

Last week's action, he added, could have already created a new trading range for Bitcoin with its macro range low at $28,800 figuring as its ceiling.

"If this turns out to be the case, Macro Range Low could flip into resistance to again reject price to lower levels," he explained. 

Meanwhile, some remained cautiously optimistic on the short-term prospects, including Cointelegraph contributor Michaël van de Poppe.

"Not sure whether we'll be getting that test going around $28.4K, but this is a scenario where I'd be looking at," he told Twitter followers.

"Crucial bullish breaker is $30.2K. Overall, expecting continuation towards $32.8K for Bitcoin."

At the time of writing, BTC/USD traded at around $29,300 on Bitstamp.

Bitcoin "synonymous with volatility"

On macro, the picture remained broadly similar to recent weeks: stocks under pressure amid an ongoing surge in U.S. dollar strength.

Related: First 7-week losing streak in history ― 5 things to know in Bitcoin this week

The U.S. dollar index (DXY) hit 105 on May 13, and as of May 16, was attempting to retest that level, which saw a rejection at the time.

The S&P 500 was down 0.65% on the day, while the Nasdaq 100 lost 1.3%.

Twitter stock again hit the headlines, this time underperforming tech stocks to trade at less than it had done before Elon Musk announced his 9% equity stake and takeover bid.

For Bloomberg Intelligence chief commodity strategist Mike McGlone, there were comparisons to be made with the dotcom bubble.

#Cryptos vs. #StockMarket: $1 Trillion Wipeout vs. $20T - Crypto assets were top performers in the past decade, and the trend is accelerating in the 2020s. The internet bubble that burst in 2000 was a reminder that nascent technologies/assets are synonymous with volatility pic.twitter.com/Jwxt6Yr8iG

— Mike McGlone (@mikemcglone11) May 16, 2022

"If the risk-asset tide keeps ebbing, one of the best performers in history — Bitcoin — should face fitting mean reversion, but early adoption days may favor the nascent technology/asset," he wrote in a further tweet on the day.

"Both Bitcoin and the S&P 500 have dropped below their 100-week moving averages.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Related Posts
Bitcoin can reach $400K in 2021 as 'risk-off reserve asset' — Bloomberg
Bitcoin (BTC) still gets criticized for being too volatile, but one Bloomberg analyst believes that it conversely is becoming a "risk-off" choice for investors. In a tweet on March 25, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that this year marked a watershed moment for the largest cryptocurrency. $400,000 BTC would "rhyme" with history McGlone uploaded a chart of the BTC/USD average price and the Bitcoin Liquid Index, a price ticker specially created for institutional use. "Well on its way to becoming a global digital reserve asset, a maturation leap in 2021 may be transitioning Bitcoin toward a …
Bitcoin / March 26, 2021
Bitcoin sees record 100 days above $10K as one analyst eyes ‘parabolic’ 2021
Bitcoin (BTC) has officially beaten a new record as BTC/USD trades above $10,000 for 100 days, and major gains should come next. As voting in the United States’ presidential election ended on Nov. 3, Bitcoin saw a landmark moment of its own — 100 days straight trading in five figures. Bitcoin sees record stretch above $10,000 The achievement is not just impressive as a record for $10,000-plus prices. According to previous data, once Bitcoin trades above these significant price levels for 100 days, BTC/USD swiftly increases by an order of magnitude. As Cointelegraph reported last week, the length of time …
Adoption / Nov. 4, 2020
Bitcoin Can Gain 100% in 2020 — Halving Not Priced In, Says Fundstrat
Bitcoin (BTC) can deliver 100% returns to investors in 2020 and may rise significantly in the five months until May’s block reward halving, a new report claims. In its forthcoming 2020 Crypto Outlook, market research firm Fundstrat Global Advisors said it believed that the halving was not yet “priced into” the Bitcoin price. Fundstrat expects over 100% BTC gains The report is currently only available to the firm’s clients, with key findings uploaded to Twitter by co-founder Tom Lee on Jan 10. “For 2020, we see several positive convergences that enhance the use case and also the economic model for …
Bitcoin / Jan. 11, 2020
Breaking 'bear market' in Bitcoin demand will spark next BTC price surge — analysts
Bitcoin (BTC) demand has been in a “bear market” for a whole year, but a surge is most likely what will spark a new price run up. That’s according to prominent economics analyst Lyn Alden, who in a Twitter debate this week bet on demand snowballing and lifting BTC price action. Back: Watch supply & demand for BTC price cues Responding to a survey by stock-to-flow model creator PlanB, Alden said that a demand transformation is more likely to cause a BTC price boom than multiple other events favored by bulls. These include the United States approving a spot price-based …
Bitcoin / Jan. 20, 2022
Bitcoin will shoot over $100K in 2023 before 'largest bear market' — trader
Bitcoin (BTC) will top $100,000 next year but a record-breaking bear market will follow, a popular trader believes. In a Twitter discussion on Oct. 22, Credible Crypto endorsed a theory that Bitcoin’s next halving will also see macro lows of just $10,000. BTC bulls need only wait a year for $100,000 With consensus calling for Q4 2022 to match the end of the 2018 Bitcoin bear market, few are in the mood to call a trend change. While a bold prediction from LookIntoBitcoin creator Philip Swift recently gave the current bear market just months to live, most commentators continue to …
Bitcoin / Oct. 22, 2022