Bitcoin (BTC), which was able to maintain “rangebound movements” through May 24, as price action avoided anticipated volatility, remained stable.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC bulls are not happy after DXY’s downmove
Cointelegraph Markets Pro and TradingView data showed that BTC/USD circled $29,000 in the wake of losing $30,000 support.
The pair continued their hourly pattern of swings between both zones. They refused to go up or down in extreme territory.
The $29.4K region is the key breaker for Bitcoin. “If that fails -> Next test at $30K,” Michael van de Poppe, a Cointelegraph contributor, stated in his most recent Twitter update.
“Overall, range-bound movements.”
On its first day, the World Economic Forum Annual Meeting did not give any market-moving signals. This was as Bitcoiners gathered at Oslo for what Alex Gladstein, chief strategy officer of Human Rights Foundation, called the “diametrically opposite” Oslo Freedom Forum.
BTC/USD was able to close the CME futures gaps to the downside. They had opened at week’s end.
“US Stocks show signs of reversal in this week. $BTC fell with them and will now pump back with them. CME gap fill is obvious. Continue reading IncomeSharks’ popular tweet “Don’t be left behind”.
CME Bitcoin futures 1-hour candle charts Source: TradingView
Market commentator tedtalksmacro continued the macro theme by explaining why crypto and other risk assets were not taking advantage of the weakness in the U.S. Dollar.
The U.S. Dollar index (DXY), which was at 102 on the morning, fell 3 points from its 20-year highs last week.
It would be easy to assume that dollar index dumping will lead to higher equities, and more #BTC. But it is not true! The DXY is falling due to hawkish comments by the ECB, and not due to a natural rise in risk-appetite… therefore no impact on crypto or stonks. (The euro makes up ~58% of the DXY) https://t.co/jSd6KlJk3L pic.twitter.com/GXICGmV1Pd
— tedtalksmacro (@tedtalksmacro) May 24, 2022
Sixty-year wait for $69,000
In the meantime, there were very few hopes for Bitcoin’s future gains.
Related: The current Bitcoin setup offers bulls an intriguing risk-reward scenario
Il Capo of Crypto is a Twitter commentator who is well-known for his sober views on BTC prices. Hodlers can only hope to surpass current $69,000 highs in 2024, according to Il Capo of Crypto.
This year will mark Bitcoin’s next block subvention halving. In this year, the reward for miners drops by 50% from 6.25 BTC down to 3.125 BTC each block.
No. No. Not expecting new ATHs until mid-late 2024 (post next halving) https://t.co/U7lfFPmSqN
— il Capo Of Crypto (@CryptoCapo_) May 24, 2022
There is consensus that a “capitulation” event will be held to lower BTC/USD’s May lows of $23,800.
Cointelegraph reported that the current spot price action is putting pressure on miner profitability. The difficulty was expected to fall by 3.2% on May 25, the largest decline since July 2021.
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