Bitcoin (BTC) starts better than most this week as bulls avoid serious losses over the weekend.
The largest cryptocurrency, which is still heavily tied to declining stock markets, is nevertheless spending $ 30,000 on May 23, looking at the top of its trading segment after LUNA.
While there are no signs of an imminent miracle price recovery, some are hoping for an increase before any reversal of the decline.
Macroeconomic conditions are still weak – and the week to be held at the annual meeting of the World Economic Forum (WEF) should add fuel to the fire around Bitcoin’s tolerance.
Add to that the biggest adjustment down to the difficulties since last July and it becomes clearer that Bitcoin is fighting for strength on many fronts.
What could happen in the next few days? The Cointelegraph shows a few things to keep in mind when it comes to BTC pricing.
BTC price “nuke” still on the table
In stark contrast to the past few weeks, Bitcoin managed to show strength after the week-end of May 23rd.
Despite still sealing the record for the eighth weekly red candle in a row, the lack of a BTC / USD breakdown allowed it to hold $ 30,000 instead.
For Michaël van de Poppe, author of Coinelegraph, the trend was already visible over the weekend.
As well as good #Bitcoin.
A great rash in the $ 29.3K area, which led to a run towards $ 30.2K, which became a resistance (as stated in the previous tweet).
– Michaël van de Poppe (@CryptoMichNL) May 22, 2022
Given the overall picture of stock correlation and the monetary stance that forced them down, not everyone was confident of continuing to turn Bitcoin upside down.
High resistance above.
Not so much support below.
This is not a prediction. image.twitter.com/L34fV2sA7M
– Nunya Bizniz (@Pladizow) May 23, 2022
“My preferred Bitcoin scenario is a nuclear test right at $ 22k before a big jump near $ 40k,” popular Nebraska Gooner Twitter trader said followers the other day.
“This would provide the best opportunity to release the bear market and catch a lot of people off track. Good to keep an eye on all scenarios, especially since everyone is so confident of a bounce.
That perspective is in line with current claims that Bitcoin will hit the previous $ 23,800 low behind the Terra LUNA meltdown.
Late last week, Filbfilb, co-founder of the Decentrader business suite and longtime market analyst, said it was time to agree that the largest cryptocurrency was in the bear market.
“Should we lose current support at $ 28,670, the final support for new lows is $ 26,512,” he added at the time, noting support and resistance that has not yet seen a re-examination.
“Ultimately, should prices break through daily resistance, the lower limit of the Log Growth channel is $ 34,270.
In the meantime, regardless of the strength of $ 30,000 this week, there should be relief before a possible series reversal, said popular Twitter account IncomeSharks.
#Bitcoin – You can call it a bounce of dead cats, a help gathering, a bearish re-examination or a bottom to be in, whatever you want to say …. Taurus or bears should at least agree that we’re upside down first. image.twitter.com/o04UwAgDPn
– IncomeSharks (@IncomeSharks) May 23, 2022
At the time of writing, BTC / USD was calling $ 30,500, according to data from Cointelegraph Markets Pro and TradingView.
Settlement where WEF intends to “change” Bitcoin
The first personal annual meeting of the International Economic Council since the beginning of the coronavirus epidemic is the macroeconomic trigger of the week.
As the economic elite gather in Davos, Switzerland, from May 22 to May 26, markets are preparing for a possible fluctuation behind their expected comments.
Related: WEF 2022, May 23: Latest updates from the Cointelegraph Davos team
For Bitcoiners, the event tends to be stressful as the industry tries to assess attitudes among traditional financial heavyweights.
This year is probably no different – just one month ago, WEF released a video claiming that Bitcoin should turn its Proof-of-Work algorithm into Proof-of-Stake for environmental purposes.
The accompanying campaign, “Change the Code,” from Ripple founder and CEO Chris Larsen and Greenpeace USA, is trying to gain general support for the exchange.
Furthermore: “Experts” have found a way to move #Bitcoin from a distributed network to a centralized one, so that they can control it.
– Carl ₿ MENGER ⚡️. (@CarlBMenger) May 8, 2022
The collapse of stablecoin TerraUSD (UST) this month further dragged cryptocurrencies into the financial institution’s crosshairs. Christine Lagarde, President of the European Central Bank, argued that all cryptocurrencies were “of equal value” and therefore demanded – perhaps paradoxically – regulation.
“It is based on nothing, there are no underlying assets to act as an anchor of security,” she told the Dutch television show College Tour in an interview published on May 22.
Both WEF and Lagarde have been criticized by Bitcoin sources, as even companies such as Swiss-born Bitcoin Suisse show little public tolerance for their criticism.
To help them (& Christine @Lagarde) out – we offer a short base!
– Bitcoin Suisse (@BitcoinSuisseAG) May 22, 2022
Just like El Nayib Bukele, President of El Salvador, a summit on Bitcoin attended by 44 countries last week, this week’s Davos event will see Bitcoin’s prominent competitor over the fiat currency.
The Freedom Congress in Oslo, which will be held from 23 May to 25 May in Oslo, Norway, describes itself as “a global gathering of activists who unite to oppose tyranny.
Speaking at the event are a number of well-known Bitcoin names, including economist Lyn Alden, CEO of Strike, Jack Mallers and Elizabeth Stark, co-founder and CEO of Lightning Labs.
“Two international conferences starting tomorrow are similar on the surface, but opposite. World Economic Forum and Oslo Freedom Forum. The need to rationalize money is the coercion and loss of individual rights and freedoms. See you in Oslo, “pioneer Jeff Booth, who is also due to attend, tísti this weekend.
Difficulties reflect conditions affecting miners
The major price reductions on Bitcoin are not without consequences.
According to the latest estimates, the Bitcoin network is now preparing for the trip for $ 30,000.
Difficulties, which reflect the changing dynamics of miners, will be reduced by 3.3% with the next automatic reset this week. Although modest compared to some changes, the change will still be the largest write-down since July 2021.
The reason is simple – Bitcoin price action has not only gone south but challenged the profitability of miners.
The cost of production for miners is key to determining their continued operation, and a reduction below the current number of $ 26,000 would further change the fundamentals of the network to maintain profitable participation.
According to the monitoring resource MacroMicro, as of May 21, it cost an average of $ 26,250 to process one bitcoin.
Despite possible profitability pressures based on estimated data, miners do not show signs of contempt and still keep BTC sales to a minimum, according to latest figures from the Glassnode chain analysis platform.
The outflow of miners – a coin left by the miners’ wallets – reached a one-month low on 23 May.
At the same time, Bitcoin’s mining speed has fallen from an all-time high of 233 per second (EH / s) as of May 23rd.
For Ki Young Ju, CEO of CryptoQuant, the overall development is similarly clear.
“Although BTC prices have fallen -56% since November 2021, hashrates have risen by + 75%,” he said. noted.
“The market is cold, but the basics are full of heat from mining rigs.”
The volume of a chain reaches a minimum of many months
Bitcoin has been famously boring for the general consumer group throughout 2022 thanks to price measures, but now even the participation of current investors is declining.
Chain data show that volumes have been steadily declining, with the notable exception of LUNA panic.
Glassnode, which tracks the seven-day moving average in chain trading, hit a nine-month low on May 23.
As of May 9, the moving average began to decline rapidly and by May 22, it had fallen by 70%.
While CryptoQuant’s Ki underlined the lack of interest among retail buyers, fellow analyst Willy Woo argued that it was the big players who actually had the power over market fluctuations.
“Very little in quantity and therefore the effect on price comes from retailers who have to buy groceries,” he wrote as part of a response while Twitter discussion last week.
“5% of the supply is owned by people who own less than $ 30k of BTC, the bulk of it is larger investors who sell to hedge market risk.”
Market sentiment back to the bottom
In contrast to moderate price strength, Bitcoin is anything but bullish if viewed from a perspective.
Related: Top 5 cryptocurrencies to watch this week: BTC, BNB, XMR, ETC, MANA
According to the classic sentiment, the Crypto Fear & Greed Index, the majority of the market is preparing for a new disadvantage.
At 10/100, the index is again in the lower part of the “extreme fear” of its area, which has historically appeared on the price base.
Fear & Greed is no stranger to bottom this year, having fallen to just 8/100 – the lowest since March 2020 – earlier this month.
Analyzing attitudes toward the closely related S&P 500, trader, entrepreneur and investor Bob Loukas shed some light on what could be a counterfeit pattern for Bitcoin.
Two comments on stock attitudes.
A completely extreme bearish attitude probably means that a sharp devaluation is very close.
Steady bearish sentiment confirms that this is a volatile bear market that is durable, not buying a dip yet. image.twitter.com/Jpfo9GUSMr
– Bob Loukas (@BobLoukas) May 22, 2022
Last week, a popular trader and analyst at Rekt Capital argued that a greater price change was needed to change attitudes in a way that mattered.
“It is easy to become bullish on BTC on a green day and bearish on a red day. But BTC is still only in the range of $ 28K- $ 32K, “he said tísti.
“This will continue until either of these points is broken. Movements within the field are not strong enough to signal a change in attitudes. “
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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