Weakness across markets means fresh bad news for Bitcoin, with analysts struggling to find any positive news.
Bitcoin (BTC) lost bullish momentum at the June 1 Wall Street open as United States equities faced another day of retracement.
Zooming out, “nothing” has changed
Data from Cointelegraph Markets Pro and TradingView captured a sharp U-turn for BTC/USD at the start of trading, $1,600 in three hours.
At the time of writing, the pair traded at around $30,400, giving back the past days’ gains.
For Cointelegraph contributor Michaël van de Poppe, $29,000 was now on the radar after support levels refused to cushion Bitcoin’s initial fall.
“Very simple, Bitcoin needs to hold here to have a test at $33K area possible,” he tweeted as BTC/USD reached $31,150.
The mood down surprised hardly anyone despite the recent show of strength and trip to two-week highs.
For popular trading account Crypto Tony, targets beyond the short term remained firmly in place, these coming as low as $22,000.
My target has been $22,000 – $24,000 for nearly two months now and that isn’t changing due to this small pump. Zooming out what has changed .. Nothing pic.twitter.com/eKNAyT2pO3
— Crypto Tony (@CryptoTony__) June 1, 2022
Fellow account Blake noted ongoing weakness in stocks, with which Bitcoin has been highly correlated, as a sign not to believe that the bottom was in for cryptoassets.
“This SPX situation is a big part of why I don’t consider this a “buy the dip” moment for crypto & Bitcoin,” he told followers on the day.
The S&P 500 traded down 1.1% after the first three hours’ trading, as was the Nasdaq Composite Index.
Halving “hopium” is served
Attempting to find some more positive chart features, meanwhile, Filbfilb, co-founder of trading suite Decentrader, pointed to historical patterns seen during Bitcoin’s halving cycles.
Related: Bitcoin may hit $14K in 2022 but buying BTC now ‘as good as it gets:’ Analyst
Current price action, he said, was still following Bitcoin’s lifetime trend, hinting that the familiar pain-before-gain scenario was now also playing out.
If BTC/USD had reached its farthest point from its 2020 halving price in November 2021, he analyzed, then it would have around six months’ more bearish behavior in store before rebounding into the next halving, due in May 2024.
End of bear correction on the same basis would be pre 2024 halving meaning not done until Q1 2023.
After which the cycle would look like this assuming we hit the bottom returns off the previous cycle like mentioned above sometime in 2025.https://t.co/3IqwyDs88c
— filbfilb (@filbfilb) June 1, 2022
Filbfilb nonetheless cautioned that the theory was more “hopium” than a true prediction.
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