Is the worst still ahead? Bitcoin is likely to touch $25,000 again!
Can this bounce bring BTC to $40,000? It’s more likely to land another low at $25,000. But can we dive deeper? BTCNEXT analysts have some clues!
5–18 May main events
- UST has lost its peg to the dollar. The incident provoked the complete depreciation of LUNA and the collapse of the entire crypto market. The stablecoin crashed to $0.05, while LUNA fell well below $0.01. Additional emission of LUNA exceeded 6.5 trillion coins.
- Elon Musk has suspended the deal to buy Twitter. The billionaire postponed the deal after the media reported audience overestimation. Fake or spam accounts “made up at least 5% of its monetized daily active users”.
- PancakeSwap will limit the supply of CAKE to 750 million tokens. The PancakeSwap DeFi community supports changes to its tokenomics, where limiting the CAKE governance token’s supply to 750 million coins is a key factor. 98.8% of votes were cast in favor of the proposal.
The weekly candle closed at $30,000-$33,000, touching the uptrend line. $450 was literally not enough for the bulls to push the week above the levels of January and July 2021 ($32,260 and $31,780, respectively). There is a struggle for the psychological level of $30,000 and while this is ongoing, the price may go sideways to $30,000-$35,000. If the week closes below $30,000, BTC could continue to decrease to the $19,900-$16,200 range, with a stop in the $22,000-$24,600 zone.
The Fear and Greed index rose to 12 points in the zone of extreme fear. The funding rate is negative, indicating a concentration of shorts. Open interest is at $13.5 billion. Selling dominates (Buy: 1,244 BTC vs. Sell: 1,855 BTC). In the order book, there is local support at $29,600 and $29,000, with strong support filling the entire range of $20,000-$28,500. Serious blocks of resistance are at $35,000 and $40,000.
Due to the strong overselling, the presence of bullish convergences, formed bearish 9, extreme fear and the formation of reversal Price actions, we should expect a continuation of the rebound to $34,300 and $37,500. From these indicators, Bitcoin could rush to the last low of $25,700 or $24,700.
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