Bears Overtake Stocks, Bitcoin Tumbles To $30K, Bank Of America Gives Frightening Market Forecast

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The correlation between Bitcoin, cryptocoins and most Western stock markets was once again proven as the massive selloff seen in the cryptosphere found a willing compatriot in European markets on Monday which was followed a few hours later by US markets.

Bank of America has now warned that the S&P 500’s selloff of last week could last until October of this year. Michael Hartnett, chief investment strategist at Bank of America Global Research stated that

Past performance is no guide to future performance, but if it were like in the past, then today’s bear market only ends around October 19th 2022 with S&P 500 at 3,000 and the Nasdaq at 10,000.

Just another day folks #Cryptocrash #bitcoin pic.twitter.com/mwRh32KJBp

— Rabo Verde ♓♓♓ (@RaboReid) May 10, 2022

This would mean that the S&P 500 falls some 28% more while the Nasdaq sheds another 18%.

Stronger-than-expected economic data in H1’22 is causing market to price-in longer/bigger inflation/rates shock.

Hartnett continued.

Bitcoin seeks support around $27-$30k

Meanwhile things are also looking bleak for the cryptomarket. According to recent technical analysis, a retest of the $30k level is possible in the following days.

Bitcoin has been forming a continuation correction flag pattern after a huge bearish move starting at $69K (the ATH recorded on Nov 21), and last week it broke down the lower trendline of the mentioned flag. This strongly confirms the next bearish leg, into the $30-33K demand zone.

#Bitcoin Drops Below $30K Amid Broader Market Sell-Off.

Hits 10-Month Lowhttps://t.co/d65hau0ETS $BTC

— SHORT SQUEEZED (@ShortSqueezed1) May 10, 2022

The price has hit the previous daily low and is expected to close below it, forming a new lower low and recording the lowest daily candle close since July 2021 (in case $35K won’t get reclaimed).

In an interview with Barron’s, Yuya Hasegawa, an analyst at crypto exchange Bitbank, seemed to agree on, stating that:

Bitcoin may be on the course to restart a steep downtrend. Lower CPI readings will suffice to support the price of Bitcoin temporarily.

Until then, the price has to maintain the $33,000 psychological level, which is also around the 2022 low, to prevent the technical sentiment from aggravating further.

The world’s biggest digital coin followed suit overnight and even briefly dipped below $30k. Most analysts now agree that support should be found in the $27k level.

Michael Saylor’s Average #BTC price: $30,700

— CA Riddhi Jain (@rid2hi) May 9, 2022

Looks like Michael Saylor should start worrying indeed.

VadimVasenin / Depositphotos.com