Bitcoin bulls seem to be losing their momentum as bearish sentiment gains ground in the crypto market. The fear and greed index reflects the change in investor sentiment, falling from a May high of 65 (greed) to 48 in the present. A variety of macro factors contribute to the faltering Bitcoin price rally to $30,000 this month. Additionally, US Fed Chair Jerome Powell’s speech on Friday provided little clarity on future rate hike possibilities. While President Joe Biden and Republicans express optimism about avoiding a debt ceiling crisis, other issues persist. The CME FedWatch Tool points to a probability of a 25bps rate hike in June, concurrent with a rising DXY and a tight jobs market.
Despite Bitcoin’s price recovery of 75% this year, bull market conditions appear to be weakening. Data from Glassnode reveals that the total transfer volume on the Bitcoin network has dropped to a daily rate of $2.73 billion. This represents a 79% decrease from the peak throughput of $13.1 billion during the 2021 bull market. As a result, market observers ponder if the recent consolidation will culminate in a new low, potentially indicating lower prices. Some experts predict a drop well below the 200-WMA to the crucial support level of $24,800.
Amid these developments, an earlier report by CoinGape Media highlights whale and miner sell-offs, further exacerbating selling pressure on the BTC price. Nevertheless, well-known analysts CredibleCrypto and Michael van de Poppe speculate that the consolidation is likely over, and the BTC price should ascend. However, it is critical to consider the weak chart pattern indicated by the 50-moving average and Bollinger bands.
Currently, Bitcoin is range-bound, with $27,640 as resistance and $26,340 as support. The direction of the BTC trend hinges on a definitive close outside this zone. As crypto enthusiasts and investors grapple with these uncertainties, it is essential to conduct thorough market research and stay updated on the latest news before making any investment decisions.
In conclusion, the Bitcoin market is experiencing a period of consolidation and weakening bull market conditions. While some experts predict a potential rise in Bitcoin price, others caution that the crypto faces significant challenges that could result in a decline. As always, investors should remain vigilant and conduct their own market research to make informed decisions in this ever-changing landscape.
Source: Coingape
