Bitcoin drops to $35.5K as 1,000 point Dow correction marks the worst trading day since 2020

Global financial markets fell into chaos on May 5, with a drop of 1,063 points in the Dow Jones and a plunge of Bitcoin (BTC), to $35,571 via Binance.

This widespread weakness is due to traders having more time to process the Federal Reserve’s recent half-point increase in interest rates, the largest since 2000. It was made to curb record high inflation.

Cointelegraph Markets Pro and TradingView data show that the midday drop in BTC’s price coincided with a selloff in tech, which escalated to the close of traditional markets.

BTC/USDT 1-day chart. Source: TradingView

Here are some market analysts’ views on the May 5th market crash and where Bitcoin could fall in the short term.

Bears rule until $37500 is reclaimed

BTC/USDT 1-hour chart. Source: Twitter

Michael van de Poppe, an independent market analyst, says that the area that divides bulls from bears is defined by a close below or above $37,500.

Van de Poppe said,

“Then, I assume we’ll test $39,000 once more as there’s a large gap between. Below $37,500 there’s nothing to be said about bullish perspectives.
Nalysts advise to forget about the daily and concentrate on the weekly

Rekt Captial (a market analyst) posted this chart showing how Bitcoin is doing on the monthly charts. He identified $38,400 as the new resistance for bulls.

BTC/USD 1-month chart. Source: Twitter

Rekt Capital said,

“It wouldn’t surprise to see volatility around red all through May. To confirm red support, a Monthly Close above red is the most important.

Related: Bitcoin price drops to 10-week lows, as $40K spike is deemed a ‘nasty Bull Trap’

Is it possible for whales to maintain this critical support level?

Whalemap, an onchain data company, discussed data on how Bitcoin whales behaved during recent market volatility. It suggested that previous whale inflows at $46,551 served as an accurate resistance, and a temporary top for Bitcoin’s range.

Bitcoin large wallet inflows. Source: Twitter

Whalemap stated,

Due to the same-sized whale wallet, a similar resistance appeared at $44,355. If BTC gains this resistance, it should be our midterm resistance.

The total cryptocurrency market is now worth $1.66 trillion, and Bitcoin’s dominance rate at 41.5%.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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