Bitcoin (BTC) failed to reach USD 31,000 before Wall Street opened on May 13, as new warnings forecast a continuation of the decline.
Dollar dips and stocks bounce at week's end
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair consolidated after reaching just under USD 31,000 earlier in the day.
There are now 6.9 billion LUNA tokens in circulation, but their value is almost zero in USD terms
US stock markets experienced some relief: the S&P 500 was up 2.2% and the Nasdaq gained 3.3% at the open.
The most striking exception was Twitter shares, which at the time of writing were down 7.7% on the day, thanks to Elon Musk having delayed his takeover bid.
Paralleling the renewed strength in stocks was a drop in the U.S. dollar, with the U.S. dollar index (DXY) coming off new twenty-year highs to fall 0.2%, traditionally a boon for Bitcoin and risk assets in general.
$DXY - Finally showing some sort of chance for a pullback. This would help #Bitcoin and #Stocks. Still early to tell but it's better than seeing another green candle. pic.twitter.com/WZ3vSUwZsd
— IncomeSharks (@IncomeSharks) May 13, 2022
As optimism around Bitcoin slowly returned amid Terra's LUNA explosion, some sources still argued that it was far from guaranteed that a deeper BTC price drop would be avoided.
Among them was on-chain analytics platform Material Indicators.
"This BTC rally could continue, but before you get into FOMO, ask yourself what has fundamentally changed," it said in part of its latest Twitter update.
An attached chart from the order book of major exchange Binance showed moderate support below the spot price, however, this is little compared to the main wall at this week's lows of USD 24,000.
Equally cautious was popular trading account HornHairs, which demanded a recovery to USD 50,000 on the weekly chart to avoid a capitulation event.
"Until then, there is a real possibility that we could plummet and technically bounce for a few weeks on another dip to USD 20,000 on accumulation," a recent tweet read.
As reported by Cointelegraph, another theory suggested that to preserve its tradition of 80% declines from all-time highs, the BTC/USD pair would need to dip to just USD 14,000.
Hayes: I'd buy Bitcoin at USD 20,000, Ethereum at USD 1,300.
As the dust settled on the markets this week, another voice reiterated their existing concerns about a new crash to come.
In his latest blog post, primarily concerned about the LUNA phenomenon, Arthur Hayes, former CEO of cryptocurrency platform BitMEX, called for USD 20,000.
"Cryptocurrency markets must be left to heal after the bloodletting concludes. So it is absurd to try to imagine legitimate price targets. But I will say this: given my macro view on the inevitability of more money being printed, I will close my eyes and trust in the Lord," he wrote.
"Therefore, I am a buyer of Bitcoin at the USD 20,000 level and Ether at USD 1,300. These levels roughly correspond to the all-time highs of each asset during the 2017/18 bull market."
Hayes had already predicted that USD 30,000 would arrive in June, prior to this week's shakeout. Longer term, however, he had also told readers to prepare for a long period of pain in both cryptoassets and stocks.
By 2030, he said, bitcoin should cost "millions" of dollars.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk, so do your own research when making a decision.
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