Bitcoin Tanks, BTC Prices Likely to Retest Q1 2022 Lows of $34k

Bitcoin Erases Gains, BTC Slide 30% as Bears Target the Psychological $20k Level

Bitcoin tumbled on May 5, sliding below crucial support levels in the daily chart. The dump forced BTC down nine percent in the previous week-to-trading.

The BTC Sell-Off

BTC is down eight percent against the resurgent USDT, trailing determined bears at spot rates. The slide below this week’s low confirms April 26 losses.

Therefore, this set the pace for what could potentially be another strong leg downwards, retesting Q1 2022 lows. If sellers are firm and double down, it could slow down bulls’ ambition, forcing BTC deeper into the red from November 2021 peaks—a net negative in the immediate term.

Fort Worth is mining Bitcoin

Overall, the slide is amid positive developments from the fundamental side.

For instance, the City Government of Fort Worth became the first in the United States to set up a BTC mining rig in partnership with Lexor Technologies.

Besides, there are positive developments with the Central African Republic following the El Salvador path. It has adopted BTC as legal tender as its president says the coin would help lift its citizens from poverty.

Bitcoin Finds Adoption

Meanwhile, there is increasing adoption of BTC as a medium of exchange.

The coin has repeatedly proven to be resilient and dependable, an immutable vehicle for moving value vividly demonstrated by events following the Russia and Ukraine conflict.

Consequently, while dozens of companies accept BTC for payment via payment processors like BitPay, Gucci has also declared its support for BTC. The Italian luxury brand of fashion will accept Bitcoin at select stores.

Bitcoin Price Analysis

bitcoin price Analysis

BTC is down nine percent in the past trading week, trailing the USDT at spot rates. Notably, BTC has broken below $37.3k, confirming sharp losses in a bear continuation pattern set in motion on April 11 and April 26.

The wide-ranging, bear engulfing bar has high trading volumes pointing to strong waves of lower lows by determined sellers. It is also a breakout bar, forcing the coin below the sideways movement capped within the April 26 bear candlestick.

Considering the dump of prices and the complete reversal of May 4 gains, aggressive traders may hitch the ride, selling on every attempt to retest $37.3k. At this pace, the immediate bear target is at Q1 2022 lows at approximately $34k.

Technical charts courtesy of Trading View.

Disclaimer: Opinions expressed are not investment advice. Do your research.

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