BTC hovers around the $27,000 mark as it starts the second week of June, and despite its familiar territory, investors say a breakout is imminent. With little by way of macroeconomic triggers due this week, on-chain analysis provides other interesting insights, reinforcing the idea that, at present, the only “boring” part in Bitcoin is the spot price.
Although BTC/USD remains firmly in its narrow trading range, the chances of a breakout toward $30,000 are increasing. Popular traders are seeing fresh cause for optimism, as the 200-week moving average remains intact. However, trading account Game of Trades acknowledges that the “head and shoulders” pattern remains valid unless the price moves above the right shoulder, suggesting a potential downside target of just $24,000 for BTC/USD.
An unusual week of calm for traders sees attention shifting to OPEC+ members’ oil production cuts, as prices continue to fall despite output reductions. Moreover, a more direct potential headwind for Bitcoin and crypto comes in the form of a rebounding U.S. dollar.
On the topic of investor sentiment, the current view of the market varies heavily between classes of hodler. Most remain distinctly risk-off on Bitcoin, yet the largest class of Bitcoin “whales” holding at least 10,000 BTC are adding to their positions while everyone else is reducing exposure.
In conclusion, underlining factors reveal that although Bitcoin remains in familiar territory, a breakout is likely approaching. As the 200-week moving average remains intact and the largest Bitcoin whales continue to accumulate, the market may surprise investors in the coming days, and volatility could make a much-anticipated comeback.
Source: Cointelegraph
