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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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Realized cap stabilization, historically elevated RHODL readings and deeply negative funding rates all point toward a potential cycle low for bitcoin forming earlier this year.
What to know:
- Multiple onchain and derivatives indicators suggest bitcoin probably established a cycle low during February’s sharp selloff toward $60,000.
- Realized cap has stabilized near $1.08 trillion after heavy wealth destruction, mirroring accumulation patterns seen during previous bear-market bottoms.
- Bitcoin perpetual funding rates remained deeply negative for months, a historically reliable signal...
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