Bitcoin (BTC) fell in line with US stocks on May 31, as Wall Street began the day with a sigh.
Stocks Drive BTC Price Down Again
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $31,000 again earlier in the day after markets returned from the Memorial Day holiday.
The move mirrored those of stock indices, with the S&P 500 shedding 1.1% at the open and the Nasdaq Composite Index trading down 1%.
With the volatility in evidence, pre-existing suspicions about the staying power of Bitcoin’s recent rally remained high among social media commentators.
I still think the rise in #BTC price is false. It is clear that we do not know how high it will rise. But I have no doubt that it is pumped…
We can see a very negative delta on the daily time frame as well as imbalances in favor of sellers in the aggressive seller zone… pic.twitter.com/kcvffm9IFj— M_Ernest_​₿ (@M_Ernest_) May 31, 2022
“It is not unlikely that equities will give back some of their gains from last week,” analyst Jan Wuesterfeld wrote in the latest edition of his Bitcoin Market Intelligence newsletter.
“In my opinion, if that happens, Bitcoin will probably also erase some of the gains made over the weekend and Monday (reconnection in this case).”
Others focused on the gloomy long-term price signals. Kevin Svenson, a contributing analyst at on-chain analytics platform CryptoQuant, highlighted Bitcoin’s 20-month exponential moving average (EMA) as a source of potential future contention.
“In previous cycles, Bitcoin went from 6 to 13 months below the 20-EMA after breaking below it. Currently we have just experienced our first month below the 20-EMA,” explained.
“If human emotion repeats itself, then we will be below the 20-EMA until (at least) November 2022…and in the case of the 13 months, until May 2023.”
“No trend” of distribution by miners
The miners’ behavior may offer a silver lining for Bitcoin.
Amid warnings that miners cost price is now above spot price, creating With the threat of a capitulation similar to the bottom of the 2018 bear market, the data suggested the panic is yet to come.
“Bitcoin miners are regarded as smart money and speculators in the BTC markets,” CryptoQuant contributor and analyst Venturefounder wrote in the newsletter.
“As the BTC price recovers, Bitcoin miners have not shown any net distribution trend, in fact the net accumulation trend that started in July 2021 continues.”
An accompanying chart showed that miners in particular had increased their BTC holdings in the second half of May.
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