‘Excessive concern’ grips Bitcoin worth, however analysts level to indicators of a possible reversal


The cryptocurrency market settled right into a holding sample on Might 25 after merchants opted to take a seat on the sidelines forward of the noon Federal Open Market Committee (FOMC) assembly the place the Federal Reserve signaled that it intends to proceed on its path of elevating rates of interest. In keeping with information from Different.me, the Concern and Greed Index seeing its longest run of utmost concern because the market crash in Mach 2020.

Crypto Concern & Greed Index. Supply: Different

Knowledge from Cointelegraph Markets Professional and TradingView exhibits that the worth motion for Bitcoin (BTC) has continued to compress into an more and more slim buying and selling vary, however technical evaluation indicators aren’t offering a lot perception on what course a attainable breakout might take.

BTC/USDT 1-day chart. Supply: TradingView

Right here’s a have a look at what analysts assume might come subsequent for Bitcoin worth.

Whales accumulate as Bitcoin battles to reclaim $30,000

BTC/USDT 15-minute chart. Supply: Twitter

In accordance to market analyst Michaël van de Poppe, “#Bitcoin broke via $29.4K and ran in direction of the following resistance zone. If we maintain $29.4K, we’ll be good in direction of $32.8K. Lastly.”

One attention-grabbing factor to notice at these worth ranges is that whereas the predominant sentiment is that of utmost concern, on-chain intelligence agency Santiment pointed out that whale wallets have taken this as a possibility to build up some well-priced BTC.

Bitcoin worth vs. provide distribution. Supply: Santiment

Santiment stated,

“As #Bitcoin continues treading water at $29.6K, the quantity of key whale addresses (holding 100 to 1k $BTC) continues rising after the large dumping from late January. We have traditionally seen a correlation between worth & this tier’s tackle amount.”

Value might nonetheless pull again to $22,500

A macro perspective on how Bitcoin performs following the looks of a dying cross was provided by pseudonymous Twitter consumer Rekt Capital, who posted the next chart outlining what to anticipate if the “historic worth tendencies regarding the #BTC Demise Cross repeat […]”

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital stated,

$BTC will breakdown from the Macro Vary Low help & proceed its drop to finish -43% draw back. The -43% mark is confluent with the 200-Week MA at ~$22500.”

Associated: Scott Minerd says Bitcoin worth will drop to $8K, however technical evaluation says in any other case

“A pivotal retest”

The significance of the present worth stage for Bitcoin was touched upon by economist Caleb Franzen, who posted the next chart wanting on the long-term efficiency of BTC versus its weekly anchored volume-weighted common worth (AVWAP) noting that “This can be a pivotal retest, much like the dynamics in March 2022.”

BTC/USD vs AVWAP 1-week chart. Supply: Twitter

Franzen stated,

“A rebound on the weekly AVWAP from the COVID low might enhance bullish chances. A breakdown under it will drastically enhance bearish chances, foreshadowing a retest of the gray vary, $13.8k-19.8k.”

The general cryptocurrency market cap now stands at $1.265 trillion and Bitcoin’s dominance charge is 44.8%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you need to conduct your individual analysis when making a call.