Bitcoin (BTC) headed for an “interesting” liquidity area on May 18 as United States stock markets opened with a bearish bang.
BTC price is nearing an “interesting” rematch with lows
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it broke the $29,000 support after Wall Street opened.
US markets saw a quick reversal of earlier gains on 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 posted their biggest intraday declines since the weeks leading up to the “Black Monday” market crash of 1987.
At the time of writing, WMT was down over 15% in five trading days, while TGT was approaching 25%. Both came after reports of deteriorating earnings amid inflationary pressures on consumer spending.
“Bear market rallies can last weeks or just a few days. The combo Walmart/Target bombs suggest the US consumer may not be as healthy as thought. The three-day rally may be over,” Fred Hickey, editor of The High-Tech Stratege, told Twitter followers that day.
By default, BTC fell with the indices to threaten a break below $29,000 toward a liquidity area that represented the daily closes of last week’s decline that had peaked below $24,000.
“Looks like a clean breakdown to me. Price action has been mixed but we should at least be sweeping the lows,” tweeted popular trader and analyst Nebraskan Gooner in his latest update.
“Breaking lows and we are likely to see $22k. Holding lows and we may break out above $30k again.”
Cointelegraph contributor Michaël van de Poppe agreed, describing the area as “interesting” at around $28,400.
His longtime social media trading colleague Josh Rager was hoping for a bounce at the key level to push Bitcoin higher once more.
“Often these compressions break in one direction and then reverse,” he tweeted in reference to the falling volatility potentially leading to price action now.
A follow-up post Approved that BTC/USD was moving as planned.
Related: Aave price risks a 25% plunge if a classic bearish reversal pattern forms
Altcoins Risk 90% ‘Standard Bear Market Correction’
For altcoins, losses started accelerating as Bitcoin abandoned all short-term bullish signals.
Of the top ten cryptocurrencies by market cap, Cardano (ADA) and Solana (SOL) were the worst performers with daily losses of almost 8%.
Ethereum (ETH) shed the $2,000 support and is heading for the lowest levels since the crypto-wide capitulation on May 12.
“Altcoins have retreated sharply. But previous bear markets suggest they could turn lower,” according to trader and analyst Rekt Capital warned on that day.
“If BTC loses its macro range low, it would confirm further downside in the crypto market. That could allow altcoins to follow their standard bear market correction of over -90%.”
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