The beginning of May is shaken by what can be defined as a price crash of Bitcoin (BTC). In the space of three hours, between 7 and 10 this morning, BTC recorded a decline of 6.30%, going from 60,552 to a minimum of 56,729 UDS (Bitfinex data) as can be seen in the attached 1H graph. At the time of this writing it is worth $57,750.
Bitcon loses 6.30% in three hours
Obviously, the retracement does not only affect Bitcoin, but significantly involves the Altcoin market. In this context, an old adage always applies, the paraphrase of which goes like this: when Bitcoin sneezes, Altcoins catch a cold.
This carriage comes later Bitcoin halving, historically viewed as a bullish event, making today’s decline even more surprising to some. However, there is no need to panic; the downhill it absolutely doesn’t cancel the possibility that, in the long term, the price of BTC will retrace the post-halving increases recorded in past events.
Macroeconomics and news influence the descent
This morning, we have already highlighted some factors that may have influenced the decline in the price of Bitcoin. One is the probable new one postponement of the rate cut of the Fed, expected at the Fed meeting this evening.
Furthermore, the series continues bad news coming from the judicial front. It makes a fuss the arrest of Roger Ver for tax evasion, one of the most well-known figures in the crypto world. The arrest took place in Spain at the request of the Department of Justice American.
Bitcoin towards the bearish projection of the symmetrical triangle
In the analysis of April 27th on the price of Bitcoin we had highlighted:
.. the breakdown of the symmetric triangle still remains valid, with a bearish projection what a tip around $55,000 as the first relevant support level.
Alex Lavarello – Analyst of Criptocurrency.it
Observing the daily chart attached, we can see how the price of BTC is approaching the indicated projection, with a minimum currently at $55,729.
In these conditions, it is convenient to start taking part of the short’s gain, but above all to protect the gain position with stops or trailing stops, in case of a reversal.
BTC is approaching the first relevant support
We have to be careful about that between $56,000 and $55,000there’s a’relevant support area. From here, the BTC price could react with a rebound. A return above the $59,000 area it should lead the most prudent to close the position. The final step to close is to exceed $61,000.
Resistance levels for the restart
In this scenario, the two main resistances for a restart of Bitcoin, they pass at $62,500, while the most important one is found in the area of $65,300. A breakout of this level would be a signal of exit from the corrective phase.
Bitcoin scenario on the weekly
Observing the weekly chart, you can see how the indicator setup over the weeks it went negative. However, we will have to wait until the candle closes on Sunday evening to get a definitive picture. This setup has been long since January 2023.
