Bitcoin (BTC) Price Follows U.S Stock Market Trend, Fumbles Below $29K

• The next significant hurdle is around the $29,650 mark.
• Next, support will possibly be found at $22,000 if Bitcoin falls below $28,000.

Last week, Bitcoin (BTC) showed some promise to investors by stabilizing around $30,000 levels after plunging sharply in early May and throughout April 2022. However, on May 18th, after a sharp decline in the US share market, Bitcoin’s price fell below $29,000 once again.

Strong Correlation Between the Two

It’s been suggested by several experts that Bitcoin may act as a long-term inflation hedge. The Nasdaq 100 index on Wall Street has been closely tracking Bitcoin. Because of this, Bitcoin might be in for a rough ride if the Nasdaq continues to fall, which is more likely than not; Lark Davis, a cryptocurrency analyst, says that Nasdaq has already corrected 28% from its peak.

Despite the support of 12,100, it sank to its lowest level on Tuesday. As a result, Wall Street and Bitcoin may be in for more suffering in the future. Next, support will possibly be found at $22,000 if Bitcoin falls below $28,000. As a result, cryptocurrencies may be in for further trouble in the future.

The price has hit a low at $28,589 and is presently consolidating its losses. Near the $29,500 mark, there is an instant resistance. A Fibonacci retracement level of 23.6 percent of the latest slide from the $30,742 swing high to the $28,589 low is in the neighborhood. The price is currently trading at $29,229 as per CMC.

The next significant hurdle is around the $29,650 mark. Since it’s close to that level, the current slide from the $30,742 swing high to the $28,589 low has been retraced to the 50 Fib level. Breaking over $29,500 and $29,650 may signal the beginning of a new uptrend in the near future. As long as the price stays over $30,500, it might continue to increase towards $31,200.