Bitcoin (BTC) is bouncing back this week as a sudden surge challenges weekly highs.In what should provide some desperately needed confidence to bulls,
Bitcoin (BTC) is bouncing back this week as a sudden surge challenges weekly highs.
In what should provide some desperately needed confidence to bulls, BTC/USD is back at weekly highs on May 30, gaining several percent overnight.
In contrast to recent weekly closes, the May 29 candle managed to limit downside and reverse course immediately as the new week began.
Nonetheless, Bitcoin has now sealed nine red weekly candles in a row, something never seen before in its history.
Just how bearish is the largest cryptocurrency going into June? The macro environment remains troubled, retail interest is nowhere to be seen and calls for a deeper capitulation remain.
That said, should it continue its latest strength, Bitcoin still stands a chance of breaking out of its current trading corridor.
Cointelegraph takes a look at the factors primed to move the market in the coming days.
Can Bitcoin avoid 10 weeks of red?
Thanks to an unexpected but welcome U-turn overnight into May 30, Bitcoin is breaking with tradition this week.
Asian trading provided the backdrop to some solid gains, with both Japan’s Nikkei and Hong Kong’s Hang Seng index up over 2% at the time of writing. The trigger came from news that China is planning to relax some of its latest COVID-19 restrictions, opening up the economy.
Bitcoin nonetheless outperformed equities prior to European trading getting underway.
After an initial red hourly candle following the weekly close, BTC/USD abruptly rose from $29,300 to current levels nearing $30,700, data from Cointelegraph Markets Pro and TradingView shows.
While caution remains thanks to the weekly close still being red, Bitcoin could nonetheless end its nine-week losing streak this week as long as next Sunday’s closing price is at least $29,500.
For some, the overnight action alone has been enough to get noticeably more positive on the near-term outlook.
“Bitcoin on the verge of a mega bullish signal,” Jordan Lindsey, founder of JCL Capital,told Twitter followers.
“IMO not a time to be greedy looking for bottom ticks.”
Trader Crypto Tony noted that Bitcoin is still in a familiar trading range and should clear some key levels before being considered to have a firm trajectory. For him, this is $31,000, now not so far away.
Good morning legends
Nice relief waves to see this morning on #Altcoins .. Remember #Bitcoin is still in a range, so we need to clear $31,000 for this relief to continue
Updates to come
— Crypto Tony (@CryptoTony__) May 30, 2022
Others focused on the idea of current gains being just another relief bounce and that Bitcoin should return lower afterward.
This is why you should be able to change your bias as new data comes in
That really was a fake breakdown and now we see the real one #BTC pic.twitter.com/7AXOEffeT0
— CryptoBullet (@CryptoBullet1) May 30, 2022
Popular trading account TMV Crypto meanwhile flagged the overnight lows as key support to hold going forward.
“Not sure if we should be very bullish here on BTC + ETH,” fellow trader and analyst Crypto Ed added in a Twitter thread released on the day.
He pointed to thin weekend volumes supporting the bounce, suggesting that higher levels did not have the bid interest required to cement themselves as new support yet.
“Saw some on my feed going short, which was understandable when seeing the weakness in the charts,” he continued.
“Once again a great example to be cautious over the weekend. Too often you get played on thin order books hence I prefer to not open new positions over the weekend.”
A CME futures gap left from Friday at $29,000 meanwhile provides a further bearish target.
Analyst: Stocks rebound is “bear market rally”
With United States markets closed for a public holiday on May 30, it will be up to Europe and Asia to dictate the day’s mood.
With the World Economic Forum behind them, crypto hodlers may be able to breathe a small sigh of relief going into the new month, prior to another U.S. Federal Reserve meeting in mid-June.
Asian stocks’ return to form after eight weeks of losses formed the major macro focus on the day.
After failing to take advantage of a similar rally in the U.S. last week, Bitcoin now appears to be capitalizing on the mood, which commentators nonetheless warn is likely not an indicator of an overall trend reversal.
Monetary tightening from the Fed and other central banks has not only got stock traders down, but has ignited talk of a major recession as the price economies pay.
“We are in the middle of a bear market rally,” Mahjabeen Zaman, head of investment specialists at Citigroup Australia, told Bloomberg.
“I think the market is going to be trading rangebound trying to figure out how soon is that recession coming or how quickly is inflation going down.”
The tightening is due to become real this week, June 1 is thought to be when the Fed begins reducing its…
cointelegraph.com