Bitcoin (BTC) held on to a “rangebound movement” on May 24 as price action protected against expected volatility.
There is no cheer for BTC bulls after DXY downmove
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is back in the $29,000 range after failing to hold the $30,000 support.
On the hourly time frame, the pair thus continued a familiar pattern of swings between the two zones, refusing to trace the more extreme zone either up or down.
“The key breaker for bitcoin is again the $29.4K area. If that breaks -> next test at $30K,” Cointelegraph contributor Michael van de Poppe Abbreviation In his latest Twitter update.
“Overall, range bound movements.”
The similarly ongoing World Economic Forum annual meeting did not produce any meaningful market-moving signals in its first days as bitcoiners gathered in Oslo for the Human Rights Foundation’s chief strategy officer Alex Gladstein. Called “Widely Opposed” Oslo Freedom Forum.
BTC/USD did manage to close the CME futures gap on a downside, which opened at the end of last week.
Popular Twitter account IncomeSharks said, “US stocks showing signs of reversal this week. $BTC dropped with them, and will now pump back with them. Very clear CME gap fill. Don’t hold back.” Continuous,
Continuing the macro theme, market commentator tedtalksmacro offered an explanation of why crypto and riskier assets more broadly are not creating more of the new weakness in the US dollar.
The US Dollar Index (DXY) stood at 102 on the day, 3 points below its twenty-year high seen last week.
you think dumping the dollar index would mean higher equities and #B T c But no!
The DXY is trending downwards due to the ECB’s sharp comments and not due to a natural increase in risk-appetite… hence zero impact on cryptos and Stoxx.
(Euro makes up ~58% of DXY) https://t.co/jSd6KlJk3L pic.twitter.com/GXICGmV1Pd
— tedtalksmacro (@tedtalksmacro) 24 May 2022
Waiting two years for $69,000?
Meanwhile, looking ahead, hopes of significant gains for Bitcoin were few and far between.
RELATED: Bitcoin’s Current Setup Creates an Interesting Risk-Reward Situation for Bulls
For crypto’s Il Capo, the Twitter commentator known for his calm take on the BTC price outlook, hodlers should only expect it to beat the all-time high of $69,000 in 2024.
Bitcoin’s next block subsidy is halved that year, when the reward paid to miners is reduced by 50% from 6.25 BTC to 3.125 BTC per block.
No. I expect a good recovery after this last phase of decline (100-500% bounce depending on the coin) but we may see continuation of the bear market later this year. No new ATH expected until mid 2024 (after next halving) https://t.co/U7lfFPmSqN
— Capo of Crypto (@CryptoCapo_) 24 May 2022
The consensus is already supporting another “capitulation” style event to propel BTC/USD below its May lows of $23,800.
As Cointelegraph reported, the current spot price action presents increasing pressure on miner profitability. The difficulty was set for a 3.2% reduction estimated on May 25, the biggest drop since July 2021.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.