In recent days, the price of bitcoin has been accompanied by increasing sales pressure. Analysts say traders are waiting to see what the future holds for the market.
to the the report The Bitcoin Telegraph, the price of Bitcoin and almost the entire digital currency market fell slightly behind on Thursday, May 27, while anxious traders are still unsure of the next phase of the market after the collapse of digital currencies last week. In last week’s downtrend, Bitcoin fell to $ 30,000, and traders who used leverage in their trades suffered losses.
Market data show that although Bitcoin has been able to hit several highs and lows over the past week, buyers continue to face strong resistance from sellers in any significant attempt to break the $ 40,000 level, which is important from this psychological level. They defend.
The recent correction in the digital currency market is likely to remind many traders of some sort of post-traumatic stress disorder, a market crash in 2017 and 2018, and a two-year winter thereafter, and this could be the reason for market uncertainty.
Given that many traders are unsure about the next move of the Bitcoin price, it is wise to consider the various up and down scenarios as well as the many comments made by the analysts in this section.
Beware of traders after the recent massive sales
According to David Lifchitz, Senior Investment Director at ExoAlpha, recent market events and the catalysts that are creating the current situation need to be carefully considered.
Lifchits said in an interview that the market has seen several waves of profit after climbing almost non-stop from $ 10,000 in October 2020 to a record high of $ 65,000 in mid-April 2021 for Bitcoin. Then came the biggest settlement of 2021, during which the price of bitcoin fell to $ 30,000, and ether and other altcoins suffered even more losses.
Lifchitz also added that the reform succeeded in drastically reducing the amount of leverage that had spread in the ecosystem, which is a healthy and positive development for the market as a whole, as it helps to create a more stable foundation for the market.
Lifchitz warned that although data suggests that some early buyers were able to buy at near-floor prices, both trading volume and open futures on futures contracts remain weak, indicating that there is no rush to recover the market.
Less than 24 hours remain until the expiration date of the monthly trading options, and Lifchitz believes these will prevent any significant movement in the short term.
He said it was difficult to persuade disadvantaged investors to return to the market any time soon, given the lack of bullish catalysts and the market’s recent warning that prices would not always be bullish.
According to Lifchitz, this has put the market in a phase where everyone is saying, “Wait until we see what happens,” so that both traders and investors need to see the opposite direction, whether up or down, before deciding to enter. To market.
The market definitely needs a catalyst to move forward, whether bullish or bullish. A long period without a catalyst can make investors tired of deciding to cash in and move on to investing. This could act as a weight on the digital currency market and trigger a crash. The coming days and weeks will determine what to expect.
Frequency of ascending indicators
While ordinary digital currency traders are at a standstill, waiting for the next bitcoin move to be determined, in-chain data indicates an uptrend by larger players who seized the opportunity and bought at recent price levels.
Micah Spruill, S2F Capital’s chief investment officer, said most of the recent sales on the floor were from newcomers to the market, who were selling at a loss, and it looks like Ramki is no longer at this point. They have no choice.
In an interview, Sproll referred to the Net Transfer Volume of Bitcoin, which shows that after the downturn in the market from May 17 to 20, large amounts of US Coin and Tetra aimed to buy Bitcoin, Ethereum and other digital currencies, and Their long-term maintenance has been sent to the exchange offices.
Further analysis shows that micro-wallets with between 0.1 and 1 bitcoin, as well as whales with between 1,000 and 10,000 bitcoins, were accumulating at these levels to prepare for an uptrend.
Another uptrend that Sproll cited is Entity Net Growth, which he said is returning to the previous level, and if this trend continues in the next few weeks and this benchmark returns to its peak, it is a sign of a return. The bull market will be in full force.
Sproll evaluates Bitcoin as a whole in the future, although various factors have obscured the timing of its movements.
I think it is possible that while the market is digesting recent events and we are going through a period of mid-cycle re-accumulation, we will stay between the $ 30,000 and $ 40,000 levels for bitcoin for a long time (months). On the other hand, it is possible that we will have an improvement similar to Covid-19, as a result of which bitcoin will soon be out of this range and will recover much faster than others expect.