BTC price breakout due ‘relatively soon’ as Bitcoin volumes spook traders

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BTC price breakout due ‘relatively soon’ as Bitcoin volumes spook traders
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Bitcoin (BTC) disappointed bulls ahead of Wall Street’s open on May 26 as BTC/USD returned below $29,000.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingView

Markets ‘unusually calm’ after FOMC

Data from Cointelegraph Markets Pro and TradingView tracked a lackluster day for Bitcoin, with an hourly candle losing $800 in the hours before trading began.

The largest cryptocurrency avoided volatility in minutes released by the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve.

The measures avoided any serious divergence from the known facts about economic policy, and despite concerns that anti-inflation measures could lead to a recession, the word “recession” was not mentioned in the minutes.

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Even traditional markets remain relatively cool, with analyst Dylan LeClair describing the situation as “unusually calm” based on volatility data.

Cointelegraph contributor Michaël van de Poppe had predicted on May 25 that BTC/USD would rise to $32,800, reiterating that a breakout from its current trading zone was “relatively quick.”

At the same time, however, on-chain signals mean there may not be an impetus for a major price change, according to fellow trader and analyst Rekt Capital.

Analyzing on-chain volume, it is clear that neither buyers nor sellers are ready to make bold claims at current levels.

“Before the period of high seller BTC volume, buyer volume started to taper off over the next few weeks. But now, we’re seeing a) seller volume drop over time. b) No BTC buying Home transactions follow high sales,” he explained to his Twitter followers that day.

BTC/USD 1-week annotated chart. Source: Rekt Capital/Twitter

As Cointelegraph reported, the NVT Golden Cross, a long-term indicator designed to use volume to capture price tops and bottoms, flashed red this week as on-chain transactions appeared to be insufficient to support the $30,000 level.

Dogecoin targets new yearly low for altcoin slump

Altcoins had a mixed day on the day, with Ether (ETH) clearly being the weakest of the major market cap coins.

Related: Dollar Index Retreats From 20-Year High – But Will DXY Breakout Spark Bitcoin Recovery?

Aside from the May 12 wick, ETH/USD traded at a 10-month low on May 26, hitting $1,815 on Bitstamp.

“The question will be whether we can bounce back from here and break the $1,940 level,” Van de Poppe said.

“If that happens, I’m assuming we’re going to hold $2,050. If not, then the market is watching

ETH/USD 1-day candle (Binance). Source: TradingView

Meanwhile, Solana (SOL) is posting a daily loss of nearly 10%, while Dogecoin (DOGE) is at its lowest level since April 2021.

DOGE/USD 1-week candle (Binance). Source: TradingView

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.





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