Business

Bitcoin macro bottom ‘not yet reached’, analyst warns as BTC price sits at $30,000

Bitcoin (BTC) failed to gain $31,000 at Wall Street’s open on May 13 as fresh warnings predicted a continuation of the downside.

blank
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Dollar falls, stocks rebound at week’s end

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after touching just under $31,000 earlier in the day.

US stock markets saw some relief, with the S&P 500 up 2.2% and the Nasdaq opening up 3.3%.

The notable exception was Twitter stock, which as of this writing is down 7.7% on the day thanks to Elon Musk delaying his takeover bid.

blank
US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView

Accompanying renewed stock strength was a falling US dollar, with the US Dollar Index (DXY) retreating from fresh 20-year highs and down 0.2% – traditionally a boon for Bitcoin and risk assets in general.

As optimism about Bitcoin slowly returned amid the Terra LUNA blowout, some sources still argued that there is far from a guarantee that a deeper BTC price plunge would be avoided.

Among them was the on-chain analytics platform Material Indicators.

“This BTC rally may continue, but before you turn on FOMO, are you wondering what has fundamentally changed?” part of his latest Twitter update specified.

“IMO, the macro bottom isn’t in yet.”

An accompanying order book chart from major exchange Binance showed moderate support below spot, but that’s little compared to the main wall at this week’s lows of $24,000.

blank
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

Equally cautious was popular trading account HornHairs, which requested a reclaim of up to $50,000 on the weekly chart to avoid a capitulation event.

“By then, there’s a real chance we could be hacking around here for a couple of weeks and dead cat jumping into another flush down to $20,000 for the accumulation floor,” read a recent tweet read.

As Cointelegraph reported, another theory suggests that BTC/USD would need to dip to just $14,000 to maintain its tradition of 80% drawdowns from all-time highs.

Hayes: I would buy Bitcoin for $20,000, Ethereum for $1,300

As the dust settled in the markets this week, another voice reiterated his existing concerns that another meltdown was imminent.

Related: Canadian Bitcoin ETF adds 6.9k BTC in one day as GBTC rebate hits record low

Arthur Hayes, former CEO of crypto derivatives platform BitMEX, asked for $20,000 in his latest blog post, which is mostly about the LUNA phenomenon.

“Crypto capital markets must be given time to recover after the bloodshed is over. Therefore, it is foolish to try to fathom legitimate price targets. But I will say this – given my macro view of the inevitability of more money being printed, I will close my eyes and trust the Lord,” he wrote.

“That’s why I’m a buyer at Bitcoin $20,000 and Ether $1,300. These levels roughly correspond to each asset’s all-time highs during the 2017-18 bull market.”

Hayes previously called for $30,000 to bat in June before the shakeup unfolded this week. Longer term, however, he had also told readers to prepare for an extended period of pain in crypto assets and stocks alike.

By 2030, he said, Bitcoin will cost “millions of dollars.”“Dollar.

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.