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On May 2, Bitcoin (BTC) struggled to maintain support at $28,000 after the month commenced with several days of low prices.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price: "Significant volatility ahead"
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it approached the $28,000 level on Bitstamp.
The opening of Wall Street the previous day had triggered a fresh wave of downward volatility, causing the pair to drop below $27,700.
This decline followed a downturn right after the weekly and monthly close, with the $30,000 mark and higher increasingly seeming unattainable.
Market participants’ price targets for BTC mirrored the prevailing sentiment. Michaël van de Poppe, founder and CEO of trading firm Eight, suggested that a revisit to both $25,000 and $30,000 remained a possibility.
“Nothing is certain, but the sweep on Bitcoin is complete,” he informed his Twitter audience regarding the recent lows.
“If we break through $28.4K, we could return to $30K within days. If we don’t break and fold in the coming days, $25K is next. Significant volatility is on the horizon.”
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
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In reference to the Federal Reserve’s interest rate decision on May 3, another post characterized Bitcoin as being “in sideways territory, where both bears and bulls have valid arguments for their positions.”
“There’s a lot of fear leading up to the Fed event tomorrow, likely unwarranted, but we’ll see. Anticipating a slightly deeper move,” Van de Poppe added.
Bank stock declines fail to motivate crypto
Regarding the Fed event itself, there was little uncertainty, as market sentiment outside of crypto was pricing in an almost certain 0.25% rate increase.
Related: Second-largest US bank failure — 5 things to know in Bitcoin this week
As of May 2, the odds according to CME Group’s FedWatch Tool were at 97.4%.
This would mirror the Fed’s decision in March, which, similar to the current situation, was accompanied by issues in the US banking sector.
On May 1, several local banks experienced declines in value, reminiscent of the situation six weeks earlier. However, unlike that time, Bitcoin did not seem inclined to take advantage of the turmoil.
US Regional Bank Stocks Today:
1. Valley National, $VLY: -20%
2. Metropolitan Bank, $MCB: -18%
3. HomeStreet Bank, $HMST: -18%
4. HarborOne, $HONE: -11%
5. PacWest, $PACW: -10%
6. Citizens Financial, $CFG: -7%
7. Zions Bank, $ZION: -4%
8. KeyCorp, $KEY: -4%
9. M&T Bank, $MTB:…— The Kobeissi Letter (@KobeissiLetter) May 1, 2023
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any choices.
