Bitcoin price risks $29K ‘nosedive’ as Wall Street opens with fresh losses

Bitcoin (BTC) lost bullish momentum at the June 1 Wall Street open as United States equities faced another day of retracement.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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.

“If not, this is going to nosedive quite fast to $29K range.”

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.

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 crypto assets.

“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. 

“I’m going to let the markets do their thing for a bit…”

The S&P 500 traded down 1.1% after the first three hours’ trading, as did 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.

Filbfilb nonetheless cautioned that the theory was more “hopium” than a true prediction.

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