Bitcoin (BTC) hit its lowest level in over two months later on May 5 as Wall Street trading saw volatility return with a bang.
Data from Cointelegraph Markets Pro and TradingView painted an unsettling picture for hodlers as BTC/USD fell to $36,520 on Bitstamp.
Capping losses, which totaled 8.3% at one point, Bitcoin only bounced at a price last seen on Feb. 24 this year.
As Cointelegraph reported, the performance had come in tandem with mayhem in U.S. markets as equities gave up previous gains to flip bearish on the economic outlook. The Federal Reserve's "priced in" rate hikes thus appeared to have been something of a red herring.
"BTC breaks below 37K after a nasty bull trap yesterday. Good lesson to many who continue to insist on fighting the trend," popular trader Cheds reacted on the day.
At the time of writing, BTC/USD traded at around $37,000, having recouped a modest portion of the ground given up in the first two hours of the Wall Street session. Comparatively, the Nasdaq 100 was 4.5% down and the S&P 500 3.2%.
Even news that Blockchain protocol Terra had purchased a giant $1.5 billion of BTC to back its TerraUSD (UST) stablecoin failed to lift the mood.
"Can you imagine how disastrous this will be for central bank credibility (trust in the fiat system) if this equity market keeps unwinding in the coming weeks and they need to aggressively reverse policy within a month or two. Trust is already in shambles…," podcast host Preston Pysh commented as relative stability returned.
The action was a boon for the U.S. dollar, meanwhile, as shown in the U.S. dollar index (DXY) reversing earlier losses to retest its highest levels in twenty years.
DXY stood at near 104 at the time of writing, up 1.2% on the day.
Amid the chaos, previous bullish theories on BTC covering longer timeframes received a major test of their own.
Related: ‘More likely’ BTC price will hit $100K before Bitcoin sweeps $30K lows, forecast says
Among them was that based on Bitcoin's on-balance volume (OBV).
OBV, a cumulative volume measure used to identify buying and selling pressure, has, in fact, been calling for BTC price upside since the $32,000 lows in January, popular Twitter account IncomeSharks claimed earlier on May 5.
A series of higher lows since had given the impression that serious downside could be averted based on OBV data.
Here's your #Bitcoin roadmap. OBV hasn't one gone bearish since January. That's where it said the bottom was in. We keep making higher highs and higher low. This is an uptrend after a correction. https://t.co/gCq9p3CBjt
— IncomeSharks (@IncomeSharks) May 5, 2022
As Cointelegraph reported, however, price targets of $30,000 or lower in the coming months only increased in the past few weeks.
The views and opinions expressed here 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 conduct your own research when making a decision.
Elon Musk has filed a lawsuit against OpenAI, accusing the company of abandoning its open-source mission in favor of profit-driven collaboration with Microsoft. The lawsuit seeks to compel OpenAI to return to its original open-source model and ensure transparency in the development of artificial general intelligence (AGI).
WeatherlyNigeria seeks $10 billion from Binance for alleged illegal transactions, contributing to Naira's fall and economic strain, as the country tightens grip on cryptocurrency exchanges.
AlexBitcoin's price surged to $64,000, influenced by U.S. government wallet transfers and strong demand from newly launched U.S. Bitcoin spot ETFs, signaling a historic bull market.
MiyukiAuckland-based MACSO, funded by US investors, collaborates with Piera Systems to tackle underage vaping using innovative AI technology. Their advanced solution detects vape and cigarette smoke particles accurately, aiming to create safer environments for students globally.
AnaisWorldcoin's trajectory is buoyed by AI hype but faces challenges from token unlocks and utility questions.
AlexMiyukiElon Musk's lawsuit against OpenAI alleges breaches in contracts and fiduciary duties, stemming from his concerns about the company's profit-driven focus. While an executive suggests Musk's regrets over leaving the company as a possible motive, the dispute underscores broader ethical debates in AI development.
WeatherlyBitcoin's impending halving in April 2024 is anticipated to reshape supply dynamics, potentially driving prices upwards amidst heightened demand. Investors must also monitor the Federal Reserve's March rate decisions, as they could impact Bitcoin's post-halving performance alongside market sentiment.
AnaisThe crypto industry is actively influencing the 2024 U.S. election, with Super PACs spending millions to back crypto-friendly candidates. However, ethical concerns arise amid the surge in crypto spending, highlighting the need for transparency and accountability in political interactions.
WeatherlyFTX has initiated its reimbursement strategy for creditors post-bankruptcy, but faces criticism over its claim window pricing, which significantly deviates from current market rates. Discontent among creditors persists due to the substantial gap between asset prices during the exchange's bankruptcy filing and their present market values.
Joy