Bitcoin broke below a short-term uptrend as momentum signals turned negative. The cryptocurrency could see further declines toward $30,000, which is near the bottom of a year-long trading range. At the time of writing, BTC is changing hands at $35,938.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price breaking down, support at $30,000
BTC failed to hold $40,000 over the past few months and is down by 47% from its all-time high of around $69,000 achieved in November of last year. The long-term uptrend has weakened, which suggests the upside remains limited this year.
On the weekly chart, BTC is at risk of breaking below its 100-week moving average at $36,247. A second weekly close below that level could yield downside targets toward $30,000 and then $17,823 (a roughly 80% peak-to-trough decline, on par with the 2018 crypto bear market).
Still, May is typically a seasonally strong period for stocks and cryptos. That could keep short-term buyers active at lower support levels, albeit lacking the conviction to shift the recent downtrend in price.
“After yesterday’s mid-sized correction, the dust is still settling across crypto markets. Bitcoin’s network had 1.17M unique active addresses making transactions yesterday, which was the highest amount of utility since December 2, 2021”, Santiment reported.
Source: Santiment
BTC’s latest price range between $35,000 and $46,000 occurred alongside a persistent downtrend in the buy/sell volume ratio. That suggests some buyers have remained on the sideline despite short-term stabilization in price.
Ether (ETH) is down by 4% over the past week, compared with a 6% decline in BTC. Altcoins were also relatively stable on Friday, although GALA rose by as much as 9%, outperforming other tokens on the CoinDesk 20 list. Also, Algorand’s ALGO token was up by 12% over the past 24 hours.
The overall cryptocurrency market cap stands at $1.650 trillion, and Bitcoin’s dominance rate is 41.5%.
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