By
Tolu Ajiboye
April 23rd, 2024
Bitcoin has lost steam once again slipping under $30,000. If bears continue to dominate, the BTC price can see further downside to $22,000.
The world’s largest cryptocurrency Bitcoin (BTC) has come once again under the market conditions ruled by bears. After a surprise rally earlier this week, Bitcoin loses steam and is currently down more than 6% slipping under $30,000 levels.
The world’s largest cryptocurrency comes under pressure once again as the US equity market fumbles. On Wednesday, all of the top three US stock indices were under pressure ending the trading in negative for a second consecutive day in a row.
One of the major support levels for Bitcoin at this point is $29,200. Losing this we could see the BTC price slipping further to $25,000 and even below.
Don’t Get Into the Bitcoin Market Ruled by Bears
Last week, Bitcoin and the broader cryptocurrency market corrected heavily while the US equities posted a strong show. It was a major decoupling of Bitcoin from its most correlated index, the Nasdaq 100. As a result, Bitcoin seemed to be doing some catching up with the US stock market earlier this week.
Analysts have advised investors to maintain caution and not consider this bounce back as the start of another bull run. Instead, Bitcoin is largely showing signs of a bear market rally. A crypto analyst who goes by the pseudonym Pentoshi said:
“Bear market rallies can be brutal. They can go much higher than you think but almost always end in a 3D-1W LH or equal high. It’s easy to sell a LH and then pay for confirmation as opposed to round tripping something to new lows Don’t get fooled by emotions. This to me was an obvious bear market rally (we talked about 3840 SPX swing low before it even happened”.
Another Major Bitcoin Correction Coming?
In the latest report, Bloomberg mentions that the recent BTC price rally was just a blip before another major price crash. If it fails to defend the key support levels of $29,000, it could fall further to $22,000.
Jamie Douglas Coutts, a senior market structure analyst at Bloomberg Intelligence, wrote:
“If it can hold the psychologically important $30,000 level, it could range-trade to resistance at $40,000. Technically, a break below $29,000 would confirm an ominous double-top pattern with next support at the May low of $25,424, then the 200-week moving average at $22,130.”
Along with BTC, the broader cryptocurrency market is down by 5%. Altcoins are bleeding even more with ETH correcting over 6%.