Bitcoin remains stuck at $38,000 with some sideways movements over the last week. As traditional finance takes a bearish turn, the first cryptocurrency by market capital has shown resilience.
Bitcoin Holders Trigger Largest Capitulation In Its History, Bearish Horizon For BTC?| Bitcoin Holders Trigger Largest Capitulation In Its History, Bearish Horizon For BTC?
Bitcoin (BTC). Bitcoin trades at $38,400. There have been 1.1% losses during the past 24 hours.
Tomorrow will see a meeting of the U.S. Federal Reserve branch Federal Open Market Committee. Market participants anticipate that the financial institution will make a bolder shift in their monetary strategy.
Two months back, the FED suggested an increase of interest rates by 25 basis point (bps). Tomorrow, the FED could increase interest rates by 50 basis points (bps).
According to QCP Capital, this will mark the 50-bps increase in price since 2000. This firm claims that Bitcoin, and the cryptocurrency market are suffering from several factors.
These include a dropped in equities, with the NASDAQ Index and the S&P 500 recording 13% and 9% losses in 30 days. Bitcoin was moving with large tech stocks. The crash was to be expected but the strength that followed it wasn’t.
Market participants have underestimated the importance of this latter. The general sentiment in the crypto market seems bearish despite Bitcoin’s capacity to hold critical support at its current levels.
QCP Capital also believes that there was an increase in negative headlines, which may have contributed to losses. DeFi protocol exploits were reported in several networks, while other outages occurred across the network.
However, the trading house noted this:
In spite of the overall bearishness, we’ve actually been seeing decent upside demand both in the front-end as well as out to September and December.
QCP Capital recorded a $40,000 increase in calls for Bitcoin in the options marketplace in May. Thus, the cryptocurrency could rally in the coming days as the FED’s announcement seems to be priced in.
Bitcoin Signals are Bullish, but it’s still a sign of doom
Material Indicators analysts seem to be in favor of the bullish short-term thesis. Bitcoin could benefit from this support to regain its $40,000 level.
As one analyst recorded, for the first time in a while, exchanges’ order books show that big players have been stepping up and buying into BTC’s current price action. The cryptocurrency has shown some resilience in recent months but has struggled to rally.
#FireChartsCVD is on the rise #BTCWhales and Mega Whales were market buyers in this price range, and now a bottom is emerging. An eventual relief rally is possible. It doesn’t necessarily indicate that macrobottom is here. #NFA #Crypto #tradingpsychology https://t.co/VzE3V2kA8Q pic.twitter.com/MmIyleHGer
— Material Indicators (@MI_Algos) May 3, 2022
Similar Reading| TA: Bitcoin Bears Keep Pushing, Why Upsides Remain Limited
Another analyst claims the U.S. dollar could present some losses as it trends downwards into “weak” support at $0.95 in the EUR/USD chart. Analyst said the following hinting at the possibility of another “dead cat” bounce and more downside price action for BTC:
The last time one of these happened was during the March week. BTC rallied afterward. It rallied after that.
