The price of BTC prepares a ‘very parabolic phase’ — 5 things to know in Bitcoin this week
As May's monthly close approaches, Bitcoin (BTC) begins a new week pressing key resistance.
BTC's price action will keep the bulls on their toes, as old all-time highs will be difficult to turn into resistance. Could $69,000 fall in June?
A quiet start to the week keeps institutional activity off the table until May 28 on Memorial Day in the United States.
Later, however, macroeconomic stimuli will heat up in the form of US data publications, which, as always, will form a key focal point for crypto and risk assets.
Meanwhile, Bitcoin has its own hurdles to deal with – the consolidation below all-time highs has been ongoing for more than two months, and the current situation is still difficult to resolve.
Many optimistic BTC price predictions are circulating, some including a six-figure BTC/USD target by 2024, but concerns about a deeper retracement remain in the background.
As the market is placed in a very critical position, Cointelegraph looks at the things that are set to move them when May comes to an end.
The price of BTC will be seized at the key $69,000 level.
Bitcoin saw some weekend price action, heading above $69,000 but looking to rebound after the weekly close, according to data from Cointelegraph Markets Pro and TradingView.
In doing so, he effectively closed the latest “gap” in the CME Group Bitcoin futures markets – despite the US being closed for the Memorial Day holiday.
“Fundamental weekend price action so far,” wrote prominent trader Daan CryptoTrades in a response on X (formerly Twitter).
But the weekly close around $68,500 was Bitcoin's strongest since early April.
Commenting on recent developments, trading inputs material indicators emphasized the importance of turning $69,000 into strong support.
“Green weekly close to BTC R/S $69k with another failed attempt to reverse and a new Trend Precognition (down) signal on the W chart.” Marketing tools.
“To me, a push over $71,250 is not worth it.”
The latest data from tracking source CoinGlass shows key liquidity areas built around the spot price – keeping traders guessing as to which will be picked up first.
At the time of writing on May 27, $68,100 and $69,800 were key levels of interest, the latter being in the middle of a “cloud” in the order books.
“Bitcoin aims to strengthen at these levels,” Michael van de Pop, founder and CEO of trading company MNTrading, summed up the day.
“Where to buy? I think we'll lose $66k and test the lower range and buy there again. That's the level where you want to set your buys.”
Collapse or Collapse?
Where Bitcoin is headed after breaking out of its current range is a major concern for some market watchers.
Consensus is emerging on a breakout to the upside, but just how high the market will go remains a topic of debate.
According to Cointelegraph, calls for $95,000 in June and even $150,000 by the end of the year are being strengthened by their respective sources.
The well-known analyst BitQuant, the creator of the previous forecast, last week pointed out that BTC price declines in the region should be ignored.
“The only thing I'm sure of is that Bitcoin will go to $95K,” insists the body of another X post.
Meanwhile, Diane's crypto trades acknowledge that the historical precedent is on the bulls' side – consolidation of long periods below all-time highs has led to bull market crashes in previous BTC price cycles.
“It has now been trading ~11 weeks from the previous cycle high. In 2017 this took ~4 weeks. In 2013 this took ~13 weeks,” he calculated.
“Both have caused massive expansions since. I don't expect $BTC to slow down at this point as we leave this price range behind us.”
Some, however, still have major corrections as their starting point.
Among them is one of the famous trader Credible Crypto, which continues to look at the area around $ 60,000 next time.
By the weekend, material indicators added that it was fully prepared for $60,000 to return.
“Not much based on liquidity at the moment, feeling below $60k so expecting it to last longer,” he concluded.
Bitcoin halving is “undervalued”
According to a prominent trader and analyst, the latest Bitcoin block subsidy halving is “not priced in.”
In a YouTube video last week, Rect Capital argued that while the halving has come and gone over the past month, it has been a huge boost to BTC's price.
Bitcoin, however, is still in the middle of a halving rally – and the resulting consolidation has historically lasted as long as 160 days.
“The more we can strengthen here, the better for Bitcoin,” the video said.
Rect Capital, however, said it was “inevitable” that such levels would continue to rise after completion.
As this “most parabolic phase of the cycle” continues, a BTC price target of around $150,000 is appropriate.
This weekend, meanwhile, he pointed out that the short-term sideways BTC price action may take several weeks to resolve.
PCE data leads the macro week
With US markets closed until May 28, bitcoin has little incentive for major foreign volatility during Wall Street hours.
The Asian business session did not bring any surprises, and therefore attention will be focused on the weekend.
Here, US macro data publications return, under the heading of the producer price index (PCE) – known as the Federal Reserve's preferred measure of inflation.
The sentiment remains conservative as the Fed eases policy, risking leveraged assets. A rate cut is not expected until September or later, and other inflation data is mixed.
Despite this, US stocks continued to hit new highs.
“A short but busy week ahead,” wrote trading resource Kobeisi's letter of the weekly macro diary, noting the stock trend entered on X.
Commenting on the trend in both stocks and Bitcoin, trading firm Mosaic Assets showed mixed conditions at the end of the day for risk appetite.
“Daily momentum indicators such as the S&P 500's MACD and RSI are extended, indicating that the average reversal potential is lower. While I wouldn't be surprised to see some of the stock market's recent gains retrace, I expect any downside to be a stoppage in the bull market,” he wrote in an edition of his regular newspaper, Market Mosaic. On May 23.
Mosaic also bounced higher to come BTC/USD.
“Risk asset classes are particularly sensitive to easing conditions, which is why I'm closely watching the action in Bitcoin and crypto mining stocks for further confirmation that the bull market is unpredictable,” he said, citing Bitcoin's two-month consolidation.
“The price has been moving up the right side of the base over the past month and could be set to move to new highs. The breakout provides further evidence that investor demand for speculative assets is strong.”
BTC whales stay in the game
Regarding “buying the dip”, some groups of Bitcoin investors are not wasting time below $69,000.
Related: Traders hope for ‘crazy pump' as altcoins approach key resistance levels
The focus this week has been on the biggest of these, Bitcoin whales, who have been particularly active as prices surged to near all-time highs.
“Bitcoin whales were buying more than ever before,” said Vivek Sen, founder of Bitgrow Lab, a Bitcoin public relations firm, commenting on the side-by-side data of the chain analysis platform CryptoQuant.
The data shows a balance of almost half a million BTC active whale addresses in the last 24 hours – easily the largest on record.
Cointelegraph continues to report on whales of interest in Bitcoin, with CryptoQuant stating that they are in “acceleration mode” earlier this month.
“After entering a downward trend since March, the growth of Bitcoin demand seems to be stable,” he found.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
