Popular Technical Analyst: Quick Bitcoin Breakdown To $30,000 Is Imminent

Popular Technical Analyst: Quick Bitcoin Breakdown To $30,000 Is Imminent

Bitcoin analyst

Credit: Ivanna Maksymchuk /iStock, https://www.istockphoto.com/portfolio/IvannaMaksymchuk?mediatype=photography

Bitcoin crashed to its record low for 2022 on Monday, May 9 with CNBC chart master Carter Braxton Worth predicting “a quick price decline to $30,000+/- level is imminent” while analysts almost unanimously agreed that the best advice for Bitcoin’s short-term outlook is “be careful.”

A 32-year Wall Street veteran, Braxton Worth is considered one of the top three technical analysts. He’s the CEO and founder of Carter Braxton Worth Charting LLC. 

For four years in a row, Bitcoin has seen gains of at least 32 percent in April, but not this year. April 2022 saw a 17.3 percent loss — its worst on record, according to Cointelegraph.

After the last weekly close, the Bitcoin price kept falling toward $30,000, bypassing January’s low with a 24-hour low of $32,834.95. The No. 1 crypto was trading at $39,872 on Thursday, May 5.

Gold broker, commentator and crypto-skeptic Peter Schiff tweeted on Monday morning that the CNBC stock ticker was understating the weakness of Bitcoin. Schiff is the chief economist and global strategist at Europac, chairman Schiff Gold, owner-founder of EpacFunds and host of Schiff Radio.

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“The @CNBC ticker has #Bitcoin down by 5%. But it’s actually down by about 9% since the U.S. stock market closed on Friday of last week. As a result the ticker understates the weakness of Bitcoin relative to other risk assets since Friday’s close. If $30K fails it’s lights out!” Schiff tweeted.

“Don’t try to catch this knife,” on-chain analytics company Material Indicators tweeted.

A falling knife is usually used as a caution not to jump into a stock or other asset during a price drop. Traders will trade on a sharp drop, but they generally want to be in a short position and will use technical indicators to time their trades, according to Investopedia.

After closing on May 8 at $34,000, Bitcoin has had six weekly closes in the red, closing below its opening price — known as a red candle — a chart feature not been seen in almost eight years. The last time this happened was in August 2014, according to Cointelegraph Markets Pro and TradingView.

“Macro conditions have taken care of any hope of a late surge among the majority of analysts, who now expect financial tightening by central banks worldwide to keep risk assets such as crypto firmly in check,” William Suberg wrote for Cointelegraph.

After the U.S. Federal Reserve last week confirmed its commitment to fiscal tightening — raising interest rates and cutting government spending — the S&P 500 recorded its first five-straight-weekly drop since 2011.

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The ongoing correlation between cryptocurrencies and the broader stock market “makes for a grim ride for investors,” Suberg wrote.

Inflation, already at its highest in the U.S. in 40 years, could get worse in the face of sanctions and trade disruptions linked to Russia’s invasion of Ukraine.

The March 2022 consumer price index (CPI) was 8.5 percent, and data for April, due to be released on May 11, could be worse, according to analysts. U.S. President Joe Biden is scheduled to make a pre-emptive speech about inflation on May 10 ahead of the latest CPI report.

Credit: Ivanna Maksymchuk /iStock, https://www.istockphoto.com/portfolio/IvannaMaksymchuk?mediatype=photography