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Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

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

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.

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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