Bitcoin descended into new lows over the past week, dropping below $30k after breaking the $37.5k support level on May 5, 2022. It had been forming a bear flag since January 2022, and displayed considerable weakness after forming a distribution pattern in late March and early April. It crashed by $4000 on May 5, 2022, forming the largest daily candle since February 28, 2022, when it rose from $37.5k to $44.2k, closing at $43.1k. Prior to its relief rally on May 10, 2022, it fell by a massive $10k in a mere 5-day period, a 25% drop from the $40k price level.
The impact of the Bitcoin price crash was felt across the altcoin market, including Layer-1 tokens, which were spectacularly impacted by the market collapse. Litecoin experienced a severe price fall, closing below the $100 level and reaching prices below $80, for the first time since December 2020. The $100 support level had held during the accumulation period of the summer of 2021, as well as during the bear market which began in December 2021, until May 5, 2022, before Litecoin to the current $73-84 range.
Bitcoin Cash also experienced a significant price fall in the past several days, culminating in the crash on May 10, 2022. It fell to sub-$220 price levels, last seen in September 2020. In doing so, it fell below the $260 price support, which had held nicely since January 2022. It had failed to hold over the 200 MA on the 4-hour chart since early April 2022, except for a brief period in middle of the month, and it has been on a significant downtrend since, exhibiting significant weakness.
Ethereum fell as low as $2200 due to the crash, during a fall which began after the bearish engulfing candle formed on May 5, 2022, on the daily chart. In early April 2022, it failed to hold over the 200 MA on the daily chart, amidst a distribution pattern it experienced, and has been in a descent ever since. Yesterday’s close marks the lowest since the summer of 2021, as it fell below the $2400 resistance level, which had acted as a strong support during January, February and March of 2022.