Bitcoin (BTC) headed for an “interesting” area of liquidity on May 18 as US stock markets opened with a bearish boom.
BTC price nears “interesting” rematch with dips
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it broke through the $29,000 support after Wall Street opened.
US markets saw a rapid reversal of earlier gains during the day, with the S&P 500 down 2% and the Nasdaq 100 down 2.3% in the first hour of trading.
The big surprise, however, came from grocery giants Walmart and Target, both of which saw the biggest intraday declines since the weeks before the “Black Monday” stock market crash of 1987.
At the time of writing, WMT was down more than 15% in five trading days, while TGT was approaching 25%. Both came after reports of deteriorating earnings amid a squeeze on consumer spending due to inflation.
“Bear market rallies can last for weeks or just a few days. The Walmart/Target combo bombs indicate that the US consumer may not be as healthy as once thought. The 3-day rally could be finished”, Fred Hickey, editor of The High-Tech Strategist, Told Daily Twitter followers.
As standard, BTC declined with the indices to threaten a break below $29,000 towards a zone of liquidity that represented the daily closes of last week’s decline, which saw highs below $24,000.
“Seems like a clean break to me. Price action has been choppy, but we should at least sweep the lows,” tweeted popular Nebraskan Gooner trader and analyst in his latest update.
“The lows are breaking and we are probably seeing $22,000. The lows are holding and we can get back above $30,000.”
Cointelegraph contributor Michaël van de Poppe agreed, describing the area at around $28,400 as “interesting.”
Josh Rager, a longtime colleague in social media trading, was hoping for a rebound at the key level to push Bitcoin higher once again.
“Many times these squeezes break one way for a fakeout and then reverse,” he tweeted regarding the drop in volatility, which could now lead to price swings.
A later post confirmed that BTC/USD was moving as expected.
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Altcoins risk 90% “standard bear market correction”
On altcoins, losses started to mount faster as Bitcoin gave up any short-term bullish signals.
Among the top ten cryptocurrencies by market capitalization, Cardano (ADA) and Solana (SOL) were the worst performers, with daily losses close to 8%.
Ethereum (ETH) lost support at $2,000 and headed towards its lowest levels since the May 12 crossover capitulation.
“Altcoins have retraced a lot. But previous bear markets suggest they could go down,” trader and analyst Rekt Capital said. warned day.
“If BTC loses its Macro Range Low, it would confirm further bearishness in the crypto market. This could allow Altcoins to follow their standard bear market correction of over -90%.”
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