The Bear Market is Back with a Vengeance
May has rolled in with a noticeable chill in the air for crypto and equities markets. Many investors are left wondering if they should grab a warm blanket or pull out the big guns to weather this storm. As of now, there’s no glimmer of hope that the bullish tide will come crashing back anytime soon.
Equity Markets Tagging Along for the Ride
If you thought crypto was the only strand of spaghetti that has fallen off the fork, think again! The equities market is throwing its own pity party. Researcher Clara Medalie highlighted that companies like Block, Tesla, Microstrategy, and Coinbase have seen their prices plunge between 20% to 50%. Looks like holding onto those shares might feel more like an anchor than an investment boat.
What the Analysts Say
A recent attempt by Bitcoin bulls to rally above $39,000 was swiftly met with cold, hard resistance from the bears. Bitcoin retreated back to hover around the $38,200 mark. Just like a cat that decides the shoelaces were just a little too much fun, analysts are eying further declines.
The 200-Day EMA: The Holy Grail of Market Indicators?
Analyst Rekt Capital has stated that keeping a close eye on Bitcoin’s 200-day exponential moving average (EMA) is critical. It’s like the lighthouse guiding us through these choppy waters. According to Rekt, Bitcoin hasn’t managed to coast above this EMA long since mid-2021, creating a scenario reminiscent of a scary B-movie where you just know the protagonist is making all the wrong moves.
Preparation for a Potential Macro Bottom
Crypto trader ‘Cantering Clark’ hinted at a potential macro bottom around $28,000, drawing parallels to Bitcoin’s price-action from July 2021. Let’s be honest—who doesn’t love a good throwback? Even veteran trader Peter Brandt is chiming in, suggesting that $32,000 could be within reach, with $28,000 looking like a probable destination. It’s like a rollercoaster where you just can’t decide if you want to scream or throw your hands up in defeat.
Long-Term Trends: A Silver Lining?
While the short-term sentiment may sound like a moody teenager, long-term holders are flipping the script and accumulating more Bitcoin. According to data from Glassnode, while short-term holders are panicking, long-term holders are quietly stacking their BTC like it’s Black Friday and they’ve got a shopping cart ready. It seems that while we’re currently in the gutter, there’s still hope for the stars ahead.
Market Overview
The total cryptocurrency market cap currently sits at a hefty $1.72 trillion, with Bitcoin clinging onto a 42.5% dominance. This king of crypto is down but not out.
“Every investment and trading move involves risk. Just remember to keep your wits about you.”
