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

After crashing severely in early May and throughout April 2022, Bitcoin (BTC) did show some hope to investors last week by consolidating around $30,000 levels. However, on Wednesday, May 18, the Bitcoin price has once again slipped under $29,000 following a strong correction in the U.S. equity market.

Popular Bitcoin critic Peter Schiff calls this a classic bull trap for investors. In one of his recent 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 talking that Bitcoin could serve as an inflation hedge in the long term, however, it doesn’t seem 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 fact that Bitcoin has been closely following the Nasdaq 100 index on Wall Street. So if the Nasdaq corrects further, which has a higher probability, Bitcoin could be in for a toss. Crypto analyst Lark Davis explains that Nasdaq has already corrected 28% from the top.

On Tuesday, it tanked under its crucial support of 12,100. Thus, we could be in for more pain ahead on Wall Street as well as for Bitcoin.

Nasdaq 100 $ndx trading in bear market 28% below ATH, fallen through support at 12,100. Next relevant support is 8% lower at 11,000.

More equity pain = more pain for #bitcoin pic.twitter.com/yCICDbhuCh

— Lark Davis (@TheCryptoLark) May 19, 2022

If the BTC price drops under $28,000, the next support level will be at $22,000. This means that altcoins could be in for more pain ahead.

Robert Kiyosaki, the Rich Dad Poor Dad author says that he continues to believe in Bitcoin or the long term. He tweeted:

I remain bullish on Bitcoin’s future. Waiting for test of new bottom. $20k? $14 k? $11 k? $9 k? Why do I remain bullish? Fed and Treasury are corrupt organizations. They will self-destruct before they regain honesty, integrity and moral compass.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.