On Monday, the cryptocurrency and bitcoin market turned positive, in an attempt to break out of the current slowdown, as the market capitalization rose 1.5% to $1.37 trillion. The largest cryptocurrency, Bitcoin, reached $30,554, up 1.2%.
Bitcoin price throws up gains
Bitcoin’s downward movement is becoming more and more apparent. A rally towards $33,700 is possible.
For nearly two weeks, the fear and greed indicator of the bitcoin price has been at high levels of fear. As more and more investors are afraid to invest in the current bitcoin price, this indicator can be used as a contrarian positive indicator, allowing smart money to accumulate huge orders.
On the six-hour chart, what was previously considered a confusing sideways market is now turning into a very bullish pattern, indicating the involvement of smart money.
Bitcoin price forms a side triangle. From the Elliott wave point of view, the long sideways movement justifies the B wave pattern. Since the initial countertrend rally on May 13th around $31,200 it has spent a disproportionate amount of time in the $30K region. If technical indicators hold, another profit-taking rally with targets at $33,700 and $34,000 will occur before the major descending resistance returns.
A break below wave A at $28630 will invalidate the bullish hypothesis. If the bears succeed in breaking this barrier, the next target could be $23,500, which is a 20% drop from the current bitcoin price.
US macroeconomic conditions helped drive the cryptocurrency markets up on May 23. President Joe Biden announced his intention to reduce trade tariffs with China before the market opens, boosting investor confidence.
Related reading | Eight consecutive red closes: Is Bitcoin headed for a recovery?
Miners’ stock ups and downs
The difficulty of the Bitcoin network is expected to decline by 3.3 percent during the next automated readjustment this week, according to the latest forecast. The drop will be the largest since July 2021, and it is clear that the bitcoin slump has put miners’ profits at risk.
Despite the fact that their wallets’ movements to exchanges touched a 30-day low on May 23, according to on-chain monitoring platform Glassnode, miners are not showing signs of giving up.
At the start of a new trading week, bitcoin miners’ shares rose and fell equally.
Featured image from Unsplash, chart from TradingView.com