Bitcoin (BTC) Tanks Under $29,000 After A Classic Bull Trap, Still More Pain Left?

    After crashing severely in early May and all through April 2022, Bitcoin (BTC) did present some hope to buyers final week by consolidating round $30,000 ranges. However, on Wednesday, May 18, the Bitcoin worth has as soon as once more slipped beneath $29,000 following a robust correction within the U.S. fairness market.

    Popular Bitcoin critic Peter Schiff calls this a basic bull lure for buyers. In one in every of his latest Twitter posts, Schiff mentions:

    “I must admit that I’m surprised that Bitcoin has held up this well. But don’t get cocky #HODLers. The market never gives investors this much time to buy the bottom. It’s more likely this is a bull trap to lure in as many more buyers as possible before the next major leg down”.

    Many analysts have been speaking that Bitcoin might function an inflation hedge in the long run, nonetheless, it doesn’t appear to be true as per Schiff. He explains: “Rising #food and #gasoline prices will put more downward pressure on #Bitcoin prices. That’s because grocers and gas stations won’t trade their food or fuel for Bitcoin. So if Bitcoin #HODLers want to eat and drive soon they’ll be forced to sell their precious sats to afford to!”

    More Pain Left In Bitcoin

    We can’t deny the truth that Bitcoin has been intently following the Nasdaq 100 index on Wall Street. So if the Nasdaq corrects additional, which has the next likelihood, Bitcoin may very well be in for a toss. Crypto analyst Lark Davis explains that Nasdaq has already corrected 28% from the highest.

    On Tuesday, it tanked beneath its essential assist of 12,100. Thus, we may very well be in for extra ache forward on Wall Street in addition to for Bitcoin.

    If the BTC worth drops beneath $28,000, the following assist degree will likely be at $22,000. This implies that altcoins may very well be in for extra ache forward.

    Robert Kiyosaki, the Rich Dad Poor Dad writer says that he continues to consider in Bitcoin or the long run. He tweeted:

    I stay bullish on Bitcoin’s future. Waiting for check of latest backside. $20k? $14 okay? $11 okay? $9 okay? Why do I stay bullish? Fed and Treasury are corrupt organizations. They will self-destruct earlier than they regain honesty, integrity and ethical compass.

    Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and generally discover his culinary abilities.

    The introduced content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.

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