Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout
On Monday, the cryptocurrency and Bitcoin market turned positive, attempting to break out of its current downturn, with market capitalization rising 1.5% to $1.37 trillion. The largest cryptocurrency, Bitcoin , reached $30,554, up 1.2%.
Bitcoin Price Sheds Gains
The Bitcoin price’s downhill movement is becoming increasingly apparent. A rally towards $33,700 is possible.
For nearly two weeks, the Bitcoin price Fear and Greed indicator has been at high fear levels. Because more investors are afraid to invest in the present BTC price, this Index can be utilized as a contrarian positive indicator, allowing smart money to accumulate huge orders.
On the 6-hour chart, what was formerly deemed to be a confusing sideways market is now coiling into a very bullish pattern, indicating smart money involvement.
The price of bitcoin is creating a sideways triangle. From an Elliott wave standpoint, the lengthy sideways action justifies a wave B pattern. Since the initial countertrend rally on May 13th around $31,200, it has spent disproportionate time in the $30,000 zone. If the technicals hold, another countertrend profit-taking rise with targets of $33,700 and $34,000 will occur before significant bearish resistance returns.
A breach below wave A at $28,630 invalidates the bullish premise. If the bears succeed in breaking through this barrier, the next target might be $23,500, a 20% drop from the current BTC price.
The United States’ macroeconomic conditions aided the rise of crypto markets on May 23. President Joe Biden announced intentions to reduce trade tariffs with China before the market opened, bolstering investor confidence.
Related Reading | Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?
Miners’ Stocks Up And Down
Bitcoin’s network difficulty is expected to decrease by 3.3 percent during its next automated readjustment this week, according to the latest projections. The drop will be the biggest since July 2021, and it’s apparent that Bitcoin’s slump has put miners’ profits in jeopardy.
Despite the fact that their wallets’ moves to exchanges touched a 30-day low on May 23, according to on-chain monitoring platform Glassnode, miners are not displaying indications of capitulation.
At the start of a new trading week, bitcoin miner stocks were up and down in equal measure.
Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000
Featured image from Unsplash, chart from TradingView.com