Business

Bitcoin is retesting the key $30,000 support zone as data highlights BTC whale accumulation

Sentiment in the cryptocurrency market plummeted even lower on May 9 as an escalation of the ongoing sell-off intensified as bears pushed Bitcoin (BTC) to $30,334, its lowest price since July 2021.

blank
Crypto Fear and Greed Index. Source: Alternative.me

Several factors such as rising interest rates, the end of the Federal Reserve’s easy money policy, falling share prices and concerns surrounding the maintenance of Terra’s UST stablecoin $1 peg are all affecting sentiment in the crypto market.

Data from Cointelegraph Markets Pro and TradingView shows that an afternoon of heavy selling on May 9 pushed BTC’s price to an intraday low of $30,334 as bulls frantically regrouped to defend the psychologically important $30,000 price level .

blank
BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what several analysts are saying about the prospects for Bitcoin’s future development, along with a glimpse of how BTC whales are reacting to the recent price action.

Has a bear market begun?

The possibility of a sharp sell-off was discussed ahead of Monday’s move by analyst and pseudonymous Twitter user Nunya Bizniz sent The chart below shows a possible capitulation zone for Bitcoin.

blank
BTC/USD 1 week chart. Source: Twitter

Nunya Bizniz said:

“This 8-year-old parallel channel has four perfect touches. Will there be another capitulation spike within the yellow circle between red and blue, matching the previous all-time high?

Based on the provided chart, the price of BTC could fall as low as $19,891 if such a scenario materializes.

One way or another, what’s next for BTC is likely to spread across the cryptocurrency market as the current losing streak nears record-breaking territory, as noted by pseudonymous Twitter user Bitcoin Archive.

Bitcoin price is trading below its 2-year moving average

A more bullish view of the recent weakness was offered by crypto analyst Philip Swift, who sent The chart below shows BTC price relative to its 2-year moving average (MA).

blank
Bitcoin 2 year MA multiplier. Source: Twitter

The analyst said

“It’s that time of the cycle again! The price has fallen below the 2-year MA. Accumulate.”

Related: Bitcoin price falls to $31,000 as traders prepare for a “rocky” road and further downside

Whale wallets have feasted

Bitcoin whales were according to Twitter crypto analyst Akash accumulate by the previous downturns and sideways movements in prices.

blank
BTC price vs. wallets with 10,000 to 100,000 BTC. Source: Twitter

Akash said

“10,000-100,000 BTC wallets have been on a buying spree since April 30.”

While this data is encouraging at some levels, it is important to remember that there are no guarantees against another reversal or another downtrend and traders would do well to assume nothing and take extra care to manage their risk to control in the future.

The total cryptocurrency market cap is now $1.411 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.