Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

Bitcoin (BTC) needs to clasp existent levels and enactment to reclaim higher ones to debar a clang successful the $20,000 range, the latest investigation warns. 

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Is $20,000 incoming?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD inactive failing to cement $30,000 arsenic enactment connected the May 16 Wall Street open.

The brace had seen caller losses aft the play adjacent astatine $31,300, this successful itself disappointing marketplace participants aft sealing a grounds seventh consecutive reddish play candle.

Even arsenic the Luna Foundation Guard (LFG) revealed that it had sold almost each of its BTC reserves during past week's LUNA and TerraUSD meltdown, the implied deficiency of aboriginal selling failed to assistance the temper connected markets.

"Coming days going to beryllium precise important IMO. Keep these levels, grind higher from here," fashionable trader Phoenix summarized successful a Twitter post connected the day.

"If it fails, my eyes are connected $21.8-23.8K. Didn't expect to support those successful caput again, lol. I was incorrect reasoning Q1 operation was a inclination reversal start."

Phoenix is acold from unsocial successful forecasting a instrumentality to levels adjacent little than past week's level astatine conscionable nether $24,000.

Joining the consensus, chap trader and expert Rekt Capital likewise pointed to $20,000 being an country of involvement should existent levels neglect to clasp and buyers not materialize.

— Rekt Capital (@rektcapital) May 16, 2022

Last week's action, helium added, could person already created a caller trading scope for Bitcoin with its macro scope debased astatine $28,800 figuring arsenic its ceiling.

"If this turns retired to beryllium the case, Macro Range Low could flip into absorption to again cull terms to little levels," helium explained. 

Meanwhile, immoderate remained cautiously optimistic connected the short-term prospects, including Cointelegraph contributor Michaël van de Poppe.

"Not definite whether we'll beryllium getting that trial going astir $28.4K, but this is simply a script wherever I'd beryllium looking at," helium told Twitter followers.

"Crucial bullish breaker is $30.2K. Overall, expecting continuation towards $32.8K for Bitcoin."

At the clip of writing, BTC/USD traded astatine astir $29,300 connected Bitstamp.

Bitcoin "synonymous with volatility"

On macro, the representation remained broadly akin to caller weeks: stocks nether unit amid an ongoing surge successful U.S. dollar strength.

Related: First 7-week losing streak successful past ― 5 things to cognize successful Bitcoin this week

The U.S. dollar scale (DXY) deed 105 connected May 13, and arsenic of May 16 was attempting to retest that level, which saw a rejection astatine the time.

The S&P 500 was down 0.65% connected the day, portion the Nasdaq 100 mislaid 1.3%.

Twitter banal again deed the headlines, this clip underperforming tech stocks to commercialized astatine little than it had done earlier Elon Musk announced his 9% equity involvement and takeover bid.

For Bloomberg Intelligence main commodity strategist Mike McGlone, determination were comparisons to beryllium made with the dotcom bubble.

#Cryptos vs. #StockMarket: $1 Trillion Wipeout vs. $20T - Crypto assets were apical performers successful the past decade, and the inclination is accelerating successful the 2020s. The net bubble that burst successful 2000 was a reminder that nascent technologies/assets are synonymous with volatility pic.twitter.com/Jwxt6Yr8iG

— Mike McGlone (@mikemcglone11) May 16, 2022

"If the risk-asset tide keeps ebbing, 1 of the champion performers successful past -- Bitcoin -- should look fitting mean reversion, but aboriginal adoption days whitethorn favour the nascent technology/asset," helium wrote successful a further tweet connected the day.

"Both Bitcoin and the S&P 500 person dropped beneath their 100-week moving averages.

Bitcoin vs. S&P 500 moving mean chart. Source: Mike McGlone/ Twitter

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.