More pain for both crypto and stocks on May 6 as traders see no hint of a relief rally coming so far.
Bitcoin (BTC) fell further on the May 6 Wall Street open amid a warning that the U.S. equities sell-off was “not over.”
Novogratz: “We are not going to get a soft landing”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $35,268 on Bitstamp, bringing three-day losses alone to 11.9%.
U.S. stocks, which had a seen a bloody May 5, were in no mood for a relief rally as the S&P 500 and Nasdaq 100 fell another 1% and 0.85%, respectively.
“The Nasdaq sell-off isn’t over,” Mike Novogratz, CEO of cryptocurrency merchant bank Galaxy Digital, told CNBC.
Commenting on the Federal Reserve’s plans for a “soft landing” when it came to bringing inflation down to target, Novogratz warned that such a scenario would not happen.
On Bitcoin, meanwhile, comparisons were emerging between spot price action now and the same time last year.
“Looks like BTC has flipped the ~$38,000 level into new resistance,” popular trader and analyst Rekt Capital told Twitter followers.
“Which now means… $BTC has confirmed a return to the $28K–$38K range, which was home to consolidation in Q1 & Q2 in 2021.”
A further tweet flagged BTC/USD approaching a long-term support range, one which functioned as the second of two important weekly chart supports along with a now-lost higher low.
#BTC has lost one out of the two crucial Bull Market support levels:
• Macro Higher Low (black) ❌$BTC is slowly approaching a crucial demand area:
• Macro Range Low (green) ⏱️
This Range Low is what is supports a "Macro Re-Accumulation Range" thesis for #Bitcoin#Crypto https://t.co/3WmnTsCixL pic.twitter.com/6SMjrHziYg
— Rekt Capital (@rektcapital) May 6, 2022
Warning over altcoin market cap
Altcoins, meanwhile, saw mixed action as Bitcoin headed lower, but the overall picture looked bleak.
Related: Descending channel pattern and weak futures data continue to constrain Ethereum price
Ether (ETH) copied the 11%–12% three-day losses on BTC/USD, while other major altcoins managed to slightly stem the blow.
The overall cryptocurrency market cap, Bitcoin excluded, nonetheless approached major support on May 6.
Altcoins index is about to break the main support. Next support is 50% lower.
Real capitulation below this level. pic.twitter.com/wtXHPUkiI9
— il Capo Of Crypto (@CryptoCapo_) May 6, 2022
Bitcoin price targets, meanwhile, remained focused on $30,000 and under this week.
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