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Bitcoin Breaking Down, Support at $30K
A weekly close below $36,247 could yield further downside targets.
Updated May 11, 2023, 6:10 p.m. Published May 6, 2022, 6:12 p.m. 1 min read
Bitcoin (BTC) broke below a short-term uptrend as momentum signals turned negative. The cryptocurrency could see further declines toward $30,000, which is near the bottom of a year-long trading range.
BTC failed to hold $40,000 over the past few months and is down by 47% from its all-time high around $69,000 achieved in November of last year. The long-term uptrend has weakened, which suggests upside remains limited this year.
On the weekly chart, BTC is at risk of breaking below its 100-week moving average at $36,247. A second weekly close below that level could yield downside targets toward $30,000 and then $17,823 (a roughly 80% peak-to-trough decline, on par with the 2018 crypto bear market).
Still, May is typically a seasonally strong period for stocks and cryptos. That could keep short-term buyers active at lower support levels, albeit lacking conviction to shift the recent downtrend in price.
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Former Credit Suisse global head of portfolio and Risk Dimensions CIO Mark Connors says bitcoin has broken out of its longest stretch of underperformance in history and is ready to beat stocks, bonds, and gold as inflation stubbornly sticks around.
What to know:
- Bitcoin may be entering a new phase of outperformance versus traditional assets after ending its longest-ever stretch of underperformance against the S&P500 in early May, according to investor Mark Connors.
- Connors argues that persistent inflation, structurally high oil prices and a “higher-for-longer” interest-rate environment are pressuring bonds and could favor...
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