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Bitcoin falls to $35.5k as 1,000-point Dow correction marks worst trading day since 2020

Global financial markets went into disarray on May 5 as the Dow Jones fell 1,063 points and Bitcoin (BTC) price plummeted to $35,571 on Binance.

The widespread weakness comes as traders have had more time to digest the Federal Reserve’s recent half-point rate hike, the largest hike since 2000 in an attempt to stem record-high inflation.

Data from Cointelegraph Markets Pro and TradingView shows that the midday low in BTC price coincided with a sell-off in the tech sector that escalated to the end of traditional markets.

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what market analysts are saying about the May 5 market drop and what levels Bitcoin price could fall to in the near future.

Bears reign until $37,500 is reclaimed

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BTC/USDT 1 hour chart. Source: Twitter

According to independent market analyst Michaël van de Poppe, the zone is Are defined Bulls and bears is just above or below $37,500.

Van de Poppe said:

“Then I expect we’ll test $39,000 again as there’s a big gap in between. Nothing to say about bullish prospects below $37,500.”

Analysts say forget the daily and focus on the weekly

A glimpse into how Bitcoin is performing on the monthly chart was provided by market analyst and pseudonymous Twitter user Rekt Captial, who sent The chart below identifies $38,400 as the new resistance level for bulls.

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BTC/USD 1 month chart. Source: Twitter

Rekt Capital said:

“Wouldn’t be surprised to see volatility in the red throughout May. The monthly close above red is the key to confirming a reclaim of red as support.”

Related: Bitcoin price hits 10-week low as $40,000 top becomes ‘evil bull trap’

Will whales hold this key support level?

Data on how bitcoin whales have behaved during recent market volatility has been discussed by Whalemap, an on-chain data company recommended that the “previous whale inflows at $46,551 served as precise resistance and a temporary mid-term top for Bitcoin’s range.”

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Bitcoin Large Wallet inflows. Source: Twitter

whale card said

“Now a similar resistance at $44,355 has emerged due to a similarly sized whale wallet. This should be our medium-term resistance if BTC gets there.”

The total cryptocurrency market cap is now $1.66 trillion and Bitcoin’s dominance rate is 41.5%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.