The move for Bitcoin (BTC) and the broader cryptocurrency market was comparatively subdued on May 27th as nervous traders aren’t sure what to do after last week’s market slump that wore out leveraged traders as BTC 30,000 USD rose earlier than it recovered.
Information from Cointelegraph Markets Professional and TradingView shows that while Bitcoin’s value has made higher highs and lows over the past week, the bulls continue to face stiff resistance trying to break above $ 40,000 when bears see this psychologically necessary Achieve a level of defense.
For many traders, the current correction undoubtedly sparked PTSD-like flashbacks of the 2017 and 2018 market crashes and the two-year crypto winter, and that could be a purpose the market currently seems undecided for.
Since many traders are unsure of what might come next for the value of Bitcoin, it is wise to think about the multitude of bullish and bearish situations achievable in addition to the opinions of analysts within the sector.
Traders remain cautious after the current sell-off
According to David Lifchitz, Managing Companion and Chief Funding Officer at ExoAlpha, it is very important to take a detailed look at current market events and assess the triggers for the current state of affairs.
Lifchitz instructed Cointelegraph that after “a virtually uninterrupted bull run from $ 10,000 in October 2020 to an all-time BTC surplus of $ 65,000 in mid-April 2021” the market “hit” a series of profit-taking waves before the “deleveraging” in 2021, which caused the value of BTC to drop 54% to $ 30,000 while Ether (ETH) and Altcoins were hit even harder.
In line with Lifchitz, the correction enabled a “drastic reduction in leverage within the ecosystem” that could be viewed as a healthy improvement for the entire market as it will help “build on a particularly secure foundation”.
Lifchitz warned that while the information shows that some early Dip customers managed to amass tokens near the lows, the quantity and overt curiosity of the futures have remained weak and “do not present an urgency to reload”.
The monthly expiration of the Bitcoin and Ether choices is less than 24 hours away, and Lifchitz believes they stand in the way of “short-term significant transfer”. He also recommended that due to the lack of an upward catalyst and the current reminder that “costs don’t always go up”, “it will be difficult to convince burned buyers to return to the sport immediately”.
In line with Lifchitz, this has put the market in a “wait and see” section where every development follower and opposing buyer must “see a safe move up or down before it hits the market”.
“The market positively wants a catalyst to move up or down. Too long without a catalyst can cause investor fatigue, who may decide to spend money looking for various pastures that can act as gravity on cryptos and cause a downward movement. The following days / weeks will be very illuminating as to what to expect later. “
Bullish indicators abound
While the ordinary crypto trader is currently in a state of stasis, ready for the subsequent big transfer to sign what BTC could do later, the information in the chain suggests bullish strikes by bigger players, at the latest. Take full advantage of the decline through purchases.
According to Micah Spruill, Managing Associate and Chief Funding Officer at S2F Capital, much of the gross sales at the current lows were made by “newer entrants” who “bought at a loss and look exhausted at that level.”
Speaking to Cointelegraph, Spruill identified BTC’s online switch crowd, which shows that after the bearish downturn between Could 17 and Could 20, “large amounts of USDC and USDT have been sent to the exchanges (around BTC, ETH, etc.) . ) to buy)) and transfer them to long-term storage. “
Another evaluation shows that retail wallets containing between 0.1 and 1 BTC in addition to whale wallets containing between 1,000 and 10,000 BTC have accumulated in these areas in preparation for a fundamental surge.
Another bullish indicator cited by Spruill is the performance of internet companies that may be “moving into earlier areas” and indicating that “the bull market is back in full swing” if this trend continues over the following weeks and the metric recovers their worth returns to very high levels of their own.
Overall, Spruill sees a constructive improvement for BTC sooner or later, although the timing is questionable due to different components.
“I believe there is a likelihood that we will spend a longer interval (months) between $ 30,000 and $ 42,000 as the market is digesting current events and we have a mid-cycle replenishment segment. Alternatively, it is possible that we have a COVID-like restoration where outside of this variation Bitcoin breaks quickly and gets well much faster than others expect. “
The views and opinions expressed herein are solely those of the writer and do not materially reflect the views of Cointelegraph. Every step of investing, buying and selling is risky and you will need to conduct your individual analysis when making a choice.