More pain for both crypto and stocks on May 6 as traders see no hint of a relief rally coming so far.
Bitcoin (BTC) fell further on the May 6 Wall Street open amid a warning that the U.S. equities sell-off was “not over.”
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Novogratz: “We are not going to get a soft landing”
U.S. stocks, which had a seen a bloody May 5, were in no mood for a relief rally as the S&P 500 and Nasdaq 100 fell another 1% and 0.85%, respectively.
“The Nasdaq sell-off isn’t over,” Mike Novogratz, CEO of cryptocurrency merchant bank Galaxy Digital, told CNBC.
Commenting on the Federal Reserve’s plans for a “soft landing” when it came to bringing inflation down to target, Novogratz warned that such a scenario would not happen.
On Bitcoin, meanwhile, comparisons were emerging between spot price action now and the same time last year.
“Looks like BTC has flipped the ~$38,000 level into new resistance,” popular trader and analyst Rekt Capital told Twitter followers.
“Which now means… $BTC has confirmed a return to the $28K–$38K range, which was home to consolidation in Q1 & Q2 in 2021.”
A further tweet flagged BTC/USD approaching a long-term support range, one which functioned as the second of two important weekly chart supports along with a now-lost higher low.
#BTC has lost one out of the two crucial Bull Market support levels:
• Macro Higher Low (black) ❌$BTC is slowly approaching a crucial demand area:
• Macro Range Low (green) ⏱️
— Rekt Capital (@rektcapital) May 6, 2022
Warning over altcoin market cap
Altcoins, meanwhile, saw mixed action as Bitcoin headed lower, but the overall picture looked bleak.
Ether (ETH) copied the 11%–12% three-day losses on BTC/USD, while other major altcoins managed to slightly stem the blow.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
The overall cryptocurrency market cap, Bitcoin excluded, nonetheless approached major support on May 6.
Altcoins index is about to break the main support. Next support is 50% lower.
Real capitulation below this level. pic.twitter.com/wtXHPUkiI9
— il Capo Of Crypto (@CryptoCapo_) May 6, 2022
Bitcoin price targets, meanwhile, remained focused on $30,000 and under this week.
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