Yesterday was another exciting day in cryptland! The bitcoin (BTC) price accelerated downwards again, with the volume also increasing strongly. In the end, it now seems that BTC has found a bottom at least for the short term, resulting in quite a bounce.
Bitcoin price accelerates towards $30,000
Bitcoin has of course been in a downtrend for some time, but since May 5, this trend started to accelerate. The big question during this decline was: where is the bottom? It looks like we got an answer for that for the short term, which is at $30,000.
This is the price level that analysts and traders have been looking for from past price movements in this price area. Bitcoin, for example, already found support here in January and June 2021. Trading volume yesterday on Coinbase was last this high when bitcoin tested this support in June 2021. Economist and trader Alex Krüger argues that this high volume is a possible indication that the bottom is indeed has been reached, although there are two conditions:
“Good chance this was the bottom for a long time. 30K touched and defended. This requires two conditions: #1 weak CPI numbers on Wednesday, #2 LUNA issues addressed directly. *Long time* here is weeks maybe all of May, or BTC at 35k-36k.”
Current bitcoin price, El Salvador buys the dip
And the initial reaction at $30,000 is indeed positive. At the time of writing, bitcoin is trading at a price of $32,596 on Coinbase. That’s an increase of nearly 9% from $30,000. On the Dutch trading platform Bitvavo, the bitcoin euro price thus amounts to $30,855.
A notable development yesterday was that the president of El Salvador, Nayib Bukele, bought the bitcoin dip. He announced this on Twitter yesterday. The country bought 500 bitcoins for an average price of $30,744, and if this was the bottom, it still managed to estimate the bottom pretty well!
El Salvador just bought the dip!
500 coins at an average USD price of ~$30,744 ?#Bitcoin
— Nayib Bukele (@nayibbukele) May 9, 2022
$800 million in bitcoin long positions liquidated
Interesting fact, as much as $800 million were made yesterday lungpositions liquidated. This, of course, contributed to the downward acceleration. Do you want to learn more about bitcoin trading and how you can best approach trading in the current situation? Come and take a look at the for free for 30 days Crypto Insiders Premium environment! Ask your questions directly there to analysts, crypto coaches and the fanatical CI community.
