Bitcoin (BTC) remained in a “range of moves” until May 24 as price action avoided expected volatility.
No joy for BTC bulls after DXY move lower
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD pair hovered around $29,000 again after failing to hold $30,000 support.
On the hourly time frames, the pair continued a familiar pattern of oscillations between the two zones, refusing to explore more extreme territory, either up or down..
“The crucial breakout level for bitcoin again is the $29,400 zone. If it breaks, there will be a next test at the $30,000 level”, summarized Cointelegraph contributor Michaël van de Poppe in his latest Twitter update.
“In general, movements within the range.”
The ongoing World Economic Forum Annual Meeting also gave no significant signs of market movement in its first few days.at the same time that Bitcoiners gathered in Oslo for which the chief strategist of the Human Rights Foundation, Alex Gladstein, I call the “diametrically opposite” Oslo Freedom Forum.
The BTC/USD pair did manage to close the gap to the downside of CME futures, which had opened at the end of the previous week.
“US stocks are showing signs of reversal this week. BTC fell with them, and will now rise with them again. Very obvious CME gap filling. stay behind”, continuous the popular IncomeSharks Twitter account.
Continuing with the macro theme, the market commentator tedtalksmacro offered an explanation as to why cryptocurrencies and risk assets in general were not taking more advantage of the new US dollar weakness.
The US Dollar Index (DXY) was at 102 earlier today, down 3 points from twenty-year highs recorded last week.
You’d think that the dollar index dumping would mean higher equities and #BTC but nope!
The DXY is moving lower due to hawkish comments from the ECB and not due to a natural increase in risk-appetite… hence zero impact on crypto and stonks.
(The euro makes up ~58% of the DXY) https://t.co/jSd6KlJk3L pic.twitter.com/GXICGmV1Pd
— tedtalksmacro (@tedtalksmacro) May 24, 2022
You would think that a falling dollar index would mean a rise in equities and BTC, but no! DXY is moving lower due to the ECB’s aggressive comments and not due to a natural increase in risk appetite…so the impact on cryptocurrencies is nil. (The euro represents ~58% of the DXY) https://t.co/jSd6KlJk3L pic.twitter.com/GXICGmV1Pd
Will we have to wait two years for BTC to reach USD 69,000?
Looking ahead, hopes for significant gains for bitcoin were few and far between..
For Il Capo of Crypto, Twitter commentator well known for his sober views on the BTC price outlook, hodlers should only expect to break current all-time highs of $69,000 in 2024.
That year will be the next Bitcoin block subsidy halving, also known as halving.when the reward given to miners decreases by 50%, from 6.25 BTC to 3,125 BTC per block.
No. I expect a good recovery after this last leg down (100-500% bounces depending on the coin), but later this year we could see the continuation of the bear market. Not expecting new ATHs until mid-late 2024 (post next halving) https://t.co/U7lfFPmSqN
— il Capo Of Crypto (@CryptoCapo_) May 24, 2022
I expect a nice recovery after this last leg down (100-500% bounces depending on currency), but a bear market could continue later this year. I don’t expect new all-time highs until mid-late 2024 (after the next upcoming halving) https://t.co/U7lfFPmSqN
The general consensus already favors a new “capitulation” style event to take the BTC/USD pair below the May lows of $23,800..
As Cointelegraph reported, Current spot price action presents an ever-increasing squeeze on miner profitability. Difficulty set to decline by an estimate of 3.2% on May 25, its biggest move lower 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.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.