Fed FOMC comments and Bitcoin ‘bear channel’ could kickstart a decline to $28K

cointelegraph.com:

The start of May has seen a continuation of the weakness in crypto and equities markets and at the moment, there is no indication of any short-term factors that could reverse the bearish trend.

Equities markets are also in a downtrend and according to researcher Clara Medalie, the price of stocks from companies with exposure to Bitcoin have also taken a notable hit.

Medalie said:

Data from Cointelegraph Markets Pro and TradingView shows that an early morning attempt by Bitcoin (BTC) bulls to rally above $39,000 was easily defended by bears, resulting in a pullback to the $38,200 level.

Here’s a look at what several analysts are saying about the current price action and what lower levels to keep an eye on in the case of further decline.

According to independent market analyst Rekt Capital, watching for a close above the 200-day exponential moving average is an easy way to assess the current weakness of Bitcoin. The analyst described the metric as an “indicator of long term investor sentiment towards Bitcoin.”

Rekt Capital said,

Insight into what could come next for the BTC price was touched on by crypto trader and pseudonymous Twitter user ‘Cantering Clark’, who posted the following chart highlighting the similarities between the current price action and BTC's price action in July 2021.

Cantering Clark said,

Veteran trader Peter Brandt also shared a similar sentiment, noting that Bitcoin price could breakdown to new lows if the current "bear channel" plays out.

Brandt said:

Related: Bitcoin ‘bear market’ may take BTC price to $25K, says trader with stocks due capitulation

Despite the current downtrend, data from glassnode suggests that BTC accumulation continues to increase, a fact highlighted by Twitter account 'Negentropic'.

Th