And it was delayed – The day is strongly bearish for bitcoin (BTC). Where will the closing level be? Above $37,000, in the $36,000-$37,000 area, or even below $36,000?
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Bitcoin Below $37,000: End of Bullish Illusions?
The price of bitcoin opened today, May 5, 2022, above $39,000, subsequently dropping below $37,000. Bitcoin is trading at $36,281 at the time of writing. It is currently recording a heavy daily loss of 7%.
Bitcoin would therefore not have escaped the strong downward pressure following the announcements of the US Federal Reserve on measures aimed at fighting inflation? Trader Cheds claims that bitcoin “ drops below 37K after a bull trap yesterday “. He points out that it is “a good lesson for those who continue to insist to fight the trend “.
Technically, is bitcoin able to rise again in the very short term to raise new bullish hopes?
The trader Michaël van de Poppe had indicated that bitcoin had to “ recover the $37.5K level to hope for further increases. He estimates that the price of bitcoin will thus be able to test “again $39K”.
If bitcoin however drops below $37,500, then there would be “ nothing to say about the bullish outlook “.
To appreciate the strength of the current drop, bitcoin price crashed despite the news that Terra (LUNA) acquired for around $1.5 billion worth of bitcoin to guarantee its stablecoin, the terraUSD (UST).
While the BTC markets are in blood, the announcements of the American Federal Reserve rather benefited the American dollar (DXY. The latter started to rise again to retest its highest levels in twenty years.
Is it time to pay much more attention to the strength of the $35,000 support for bitcoin? Should we also say that any attempt to regain $40,000 in the short term would be just a simple bullish rebound, a bull trap? A daily loss of 7% is certainly impressive, but bitcoin has seen worse. The next few days will once again make it possible to assess the ability of the bulls to regain control or not, after the dance of the bears today.
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