Bitcoin Breaking Down, Support at $30K

A weekly close below $36,247 could yield further downside targets.

May 6, 2022 at 6:12 p.m. UTC
Updated May 6, 2022 at 6:26 p.m. UTC

Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

Bitcoin (BTC) broke below a short-term uptrend as momentum signals turned negative. The cryptocurrency could see further declines toward $30,000, which is near the bottom of a year-long trading range.

BTC failed to hold $40,000 over the past few months and is down by 47% from its all-time high around $69,000 achieved in November of last year. The long-term uptrend has weakened, which suggests upside remains limited this year.

On the weekly chart, BTC is at risk of breaking below its 100-week moving average at $36,247. A second weekly close below that level could yield downside targets toward $30,000 and then $17,823 (a roughly 80% peak-to-trough decline, on par with the 2018 crypto bear market).

Still, May is typically a seasonally strong period for stocks and cryptos. That could keep short-term buyers active at lower support levels, albeit lacking conviction to shift the recent downtrend in price.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also an equity/fixed income portfolio manager and does not invest in digital assets.

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