Bitcoin Pressures Key Resistance, Fuels Optimism for Breakthrough Amid Market Speculation
Summary:
Bitcoin is pressuring key resistance levels as May ends, creating anticipation among traders. The cryptocurrency briefly surpassed $69,000 over the weekend but retracted after the weekly close. As predictions circulate, ranging from six-figure price points to deeper retracements, focus is shifting to macroeconomic triggers and their impact on the market. Dominating discussions are conjectures about where Bitcoin will go once it leaves its current range, with targets of $95,000 in June and $150,000 by year-end being proposed. The recent Bitcoin halving event is still deemed a vital price catalyst and, despite mixed economic data, US stocks continue to hit all-time-highs. Meanwhile, prominent Bitcoin traders---known as 'whales'---have been actively buying as Bitcoin edges towards its all-time highs.
As we approach the monthly close of May, Bitcoin (BTC) is putting pressure on key resistance levels. While bullish traders are anxiously keeping an eye on the price action of BTC, previous all-time-highs remain a challenge to surpass. There are also questions about whether we will see BTC reach $69,000 by June. Institutional activity in the US is currently restrained due to Memorial Day, and the market is awaiting further macroeconomic activity predicted to come from future US data reports. This information is typically a critical focus for cryptocurrency and risk assets.
In the meantime, Bitcoin is facing some challenges of its own. The cryptocurrency has been trapped below its all-time high for over two months, a trend that shows no signs of resolution. Some are predicting Bitcoin's price to hit six figures in the USD by 2024, but concerns of a deeper sell-off are also playing on investors' minds. As May comes to an end, Cointelegraph is observing the factors that may influence the market's future movements.
Over the weekend, Bitcoin briefly surged above $69,000, however it quick retracted following the weekly close of trading. Consequently, Bitcoin's latest 'gap' in CME Group Bitcoin futures markets has effectively been closed. Despite retracing, the cryptocurrency ended up closing strongly with its best performance since the start of April, at around $68,500.
Despite the positive performance, there are still discussions around the necessity for Bitcoin to solidify the key $69,000 mark as a solid support level. The latest data reveals that key areas of liquidity having been established around the current price, nearby the $68,100 and $69,800 levels—which leaves traders guessing at which will be the first to strike.
Concerns over where Bitcoin will head next continues to dominate market discussions. While there is a consensus forming about a potential rise, the extent of the predicted ascension remains a topic of hot debate. Arguments have been made for targets of $95,000 in June and $150,000 by the end of the year, with their respective proposers continuing backing their forecasts. Still, some believe that a larger sell-off is looming, with projections dropping as low as $60,000.
The recent Bitcoin block subsidy halving event, despite already taking place last month, is still viewed as a critical catalyst for Bitcoin's pricing. The cryptocurrency is believed to still be inside a post-halving re-accumulation phase, which historically can last up to 160 days.
As US markets remain closed until May 28, Bitcoin is unlikely to see much in the way of major external volatility. Attention is now turning to the end of the week when US macro data—including the Federal Reserve's preferred inflation gauge: the Producer Price Index (PCE)—is set to be released.
Despite the mixed data, US stocks continue to climb and hit all-time highs. While there are indications of the S&P 500's MACD and RSI pointing towards a potential pullback, Bitcoin's two-month consolidation may be setting the stage for a future surge. Emphasis has been placed on Bitcoin's consolidation phase, with the expectation that once completed, a large upswing will follow—perhaps to a striking $150,000 target.
Lastly, the Bitcoin whales—the largest traders in the market—have been actively purchasing as Bitcoin's price approaches its all-time-highs. In recent years, these whales have consistently shown significant interest in Bitcoin—behavior likely to continue in the future.
Published At
5/27/2024 12:05:00 PM
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