Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards
May 25 2022 - 6:09PM
NEWSBTC
The spring is being compressed further as Bitcoin swings continue
to diminish. Since the commencement of active trading in New York,
the lower bound of the trading range has shifted to $29K, where the
BTCUSD has found support. The top bound of the constructed triangle
has advanced to $30.5K, up 1.8 percent from current prices of $30K
in the last 24 hours. Bitcoin Consolidation Uninspiring As range
adherence continued, Bitcoin (BTC) momentarily returned to $30,000
before the May 25 Wall Street open. While it may appear dull at
first glance, Michal van de Poppe saw Bitcoin on short periods as a
source of renewed interest, predicting a run to near $33,000 next.
He told his Twitter followers: “Bitcoin broke through $29.4K and
ran towards the next resistance zone, if we hold $29.4K, we’ll be
good towards $32.8K. Finally.” The price of Bitcoin is
consolidating, which is equally perilous for bulls and bears. Both
gain liquidity and become accustomed to existing prices over time.
On a market-cycle level, there’s a good likelihood that the present
consolidation will end with a collapse of the lower boundary and
the liquidation of stop orders, confirming the initial downside
momentum. Related reading | Investors May Expect Downside For
Bitcoin And Ethereum Market For The Next 3 Months The bearish
prognosis is fueled by monetary policy tightening and declining
economic development, which causes retail investors to withdraw
funds from bitcoin in favor of spending. It doesn’t help that
people’s hopes of getting rich quick with cryptocurrencies aren’t
coming true, as bitcoin is now valued the same as it was in early
2021. BTC/USD trades below $30k. Source: TradingView Investing in
the business is becoming more sophisticated, moving beyond naive
buy-and-hold strategies. Investors are pulling money out of bitcoin
and putting it into blockchains that enable smart contracts, such
as Cardano and Polkadot, according to CoinShares. Last week, crypto
funds lost $141 million in net capital outflows. The ECB warned
that the high correlation between cryptocurrencies and stock
markets is common during times of economic hardship, and that
digital assets will no longer be allowed to diversify investment
portfolios. Related reading | Institutional Investors Seek Safe
Haven In Crypto Products Amid Market Uncertainty Featured image
from iStockPhoto, Charts from TradingView.com
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