Bitcoin (BTC) Tanks Under $29,000 After A Classic Bull Trap, Still More Pain Left?

After crashing severely in early Could and all through April 2022, Bitcoin (BTC) did present some hope to buyers final week by consolidating round $30,000 ranges. Nevertheless, on Wednesday, Could 18, the Bitcoin worth has as soon as once more slipped underneath $29,000 following a powerful correction within the U.S. fairness market.

Well-liked Bitcoin critic Peter Schiff calls this a traditional bull lure for buyers. In one in every of his current Twitter posts, Schiff mentions:

“I have to admit that I’m stunned that Bitcoin has held up this properly. However don’t get cocky #HODLers. The market by no means offers buyers this a lot time to purchase the underside. It’s extra possible it is a bull lure to lure in as many extra patrons as attainable earlier than the following main leg down”.

Many analysts have been speaking that Bitcoin might function an inflation hedge in the long run, nevertheless, it doesn’t appear to be true as per Schiff. He explains: “Rising #meals and #gasoline costs will put extra downward stress on #Bitcoin costs. That’s as a result of grocers and gasoline stations received’t commerce their meals or gas for Bitcoin. So if Bitcoin #HODLers wish to eat and drive quickly they’ll be pressured to promote their treasured sats to afford to!”

Extra Ache Left In Bitcoin

We are able to’t deny the truth that Bitcoin has been carefully following the Nasdaq 100 index on Wall Avenue. So if the Nasdaq corrects additional, which has the next likelihood, Bitcoin could possibly be in for a toss. Crypto analyst Lark Davis explains that Nasdaq has already corrected 28% from the highest.

On Tuesday, it tanked underneath its essential help of 12,100. Thus, we could possibly be in for extra ache forward on Wall Avenue in addition to for Bitcoin.

Nasdaq 100 $ndx buying and selling in bear market 28% under ATH, fallen by help at 12,100. Subsequent related help is 8% decrease at 11,000.

Extra fairness ache = extra ache for #bitcoin pic.twitter.com/yCICDbhuCh

— Lark Davis (@TheCryptoLark) May 19, 2022

If the BTC worth drops underneath $28,000, the following help degree will probably be at $22,000. Because of this altcoins could possibly be in for extra ache forward.

Robert Kiyosaki, the Wealthy Dad Poor Dad writer says that he continues to imagine in Bitcoin or the long run. He tweeted:

I stay bullish on Bitcoin’s future. Ready for take a look at of latest backside. $20k? $14 okay? $11 okay? $9 okay? Why do I stay bullish? Fed and Treasury are corrupt organizations. They’ll self-destruct earlier than they regain honesty, integrity and ethical compass.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Know-how and Cryptocurrency markets. He’s constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary expertise.

The offered content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.