'Mega bullish signal' or 'real breakdown?'  5 things to know about Bitcoin this week

‘Mega bullish signal’ or ‘real breakdown?’ 5 things to know about Bitcoin this week – Mail Bonus

Bitcoin (BTC) is releasing again this week as a sudden increase provokes weekly highs.

In what should give bulls desperate confidence, the BTC / USD is back at its weekly high on May 30, earning a few percent overnight.

In contrast to recent weekends, the May 29 candle managed to limit the disadvantages and turn around as soon as a new week began.

Nevertheless, Bitcoin has now sealed nine red weekly candles in a row, something that has never been seen before in its history.

How bearish is the biggest cryptocurrency going into June? The macroeconomic environment is still in trouble, while retail interest is nowhere to be seen and calls for a deeper surrender.

That said, if it continues its latest strength, Bitcoin still has a chance to break out of its current trading environment.

Cointelegraph looks at the factors that are ready to move the market in the coming days.

Can Bitcoin Avoid 10 Weeks of Red?

Thanks to an unexpected but welcome overnight U-turn until May 30, Bitcoin is breaking traditions this week.

Trading in Asia provided the basis for some solid gains, as both the Nikkei index in Japan and the Hang Seng index in Hong Kong rose by more than 2% at the time of writing. The trigger came from news that China intends to relax some of its latest COVID-19 restrictions and open up the economy.

Bitcoin still outperformed equities before trading began in Europe.

After an initial red hour candle following a weekly close, the BTC / USD suddenly rose from $ 29,300 to its current value of close to $ 30,700, according to data from Cointelegraph Markets Pro and TradingView.

BTC / USD 1-week candlestick (bit stamp). Source: TradingView

While caution continues thanks to the weekend’s still red, Bitcoin could end its nine-week losing streak this week as long as next week’s closing price is at least $ 29,500.

For some, the overnight action has been enough to become noticeably more positive about the near future.

“Bitcoin on the verge of a mega bullish signal,” Jordan Lindsey, founder of JCL Capital,said Twitter followers:

“IMO is not the time to be greedy for bottom mites.

Crypto Tony trader noted that Bitcoin is still in a familiar trading area and should clear some key points before it is considered to have a solid career. For him, this is $ 31,000, now not so far away.

Others focused on the idea that current earnings were just another light jump and that Bitcoin should return lower afterwards.

TMV Crypto’s popular trading account, meanwhile, flagged the lows overnight as a key support to continue.

“Not sure if we should be very bullish here on BTC + ETH,” fellow trader and analyst Crypto Ed added in a Twitter thread published on May 30th.

He pointed to a thin weekend volume supporting the jump, suggesting that higher levels have not yet had the bid growth needed to establish themselves as a new support yet.

“Someone in my stream will be short, which was understandable when I saw the weakness in the tablets,” he continued.

“Once again a great example of being careful this weekend. Too often it is played on a thin ordering system and that’s why I do not want to open new positions this weekend. “

A CME futures after leaving on May 27 at $ 29,000, meanwhile, gives an even bearish target.

CME Bitcoin future 1 hour candlestick. Source: TradingView

Expert: Equity gains are “bear market boom”

As markets in the United States are closed for public holidays on May 30, Europe and Asia will have to decide the mood of the day.

And with the World Economic Forum behind it, cryptocurrency hodlers could breathe a sigh of relief into the new month, ahead of another US Federal Reserve meeting in mid-June.

The return of Asian equities, for example, after an eight-week loss was the main focus of the day.

After failing to take advantage of a similar visit to the US last week, Bitcoin now appears to be taking advantage of the mood, which commentators nevertheless warn is probably not an indication of an overall development.

Monetary restraint from the Fed and other central banks has not only brought down stock trading, but it has sparked talk of a sharp contraction in the price that economies pay.

“We are in the midst of a bear market move,” Mahjabeen Zaman, chief investment officer at Citigroup Australia, told Bloomberg:

“I think the market will be in business trying to figure out how quickly this contraction will come or how fast inflation will fall.

The tribulation should become real this week. June 1 is expected to be when the central bank begins to lower its balance sheet, which now has a record high of $ 8.9 trillion.

The European Central Bank (ECB) will suspend its asset purchases later this year, it was announced last week.

On 31 May, more information on the consumer price index (CPI) for the euro area will be published, ahead of similar data for the United States on 10 June.

“Equity investors monitor stability signals,” says market analyst Holger Zschaepitz wrote May 28 along with CBOE Volatility Index:

“Wall St.’s scares, investor sentiment and bond spreads are being tracked to get clues as to where the market might go next. But only one of the 5 indicators indicates that the worst is happening in the markets. “

CBOE Volatility Index. Source: Holger Zschaepitz / Twitter

Dollar strength means one month minimum

Coming to test support levels over the past week has been a strength of the US dollar.

After rising to levels not seen since December 2002, the US dollar (DXY) is finally coming back to earth and even provoking a year-on-year rise.

This could still act as silver for risky assets if the trend continues, as the opposite correlation has worked in favor of Bitcoin especially in the past.

“This could just be the start of the 2022 bull run!” Encourages Crypto Rover arguedto upload a comparator that shows the Bitcoin-DXY inverse correlation and how it played in recent years.

Bitcoin vs DXY Notebook. Source: Crypto Rover / Twitter

Crypto Ed, however, is not convinced that the good times will come again, with permission due to the persistent weakness of the dollar.

“DXY is printing an inverted pattern, a falling wedge. Another reason for not being too interested in BTC, “he added on Twitter added.

Nevertheless, at 101.49, the DXY was the lowest since April 25.

US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView

Bitcoin approaches “swing bottom”

Not everyone is bearish among Bitcoin analysts, and one of them, CryptoQuant CEO Ki Young Ju, has data to prove why.

Uploading According to the latest readings from Bitcoin’s introductory maximum spread, Ki argued that BTC / USD was in fact at a similar level to March 2020.

The realistic ceiling reflects the price at which each Bitcoin last moved and can be broken down into age categories.

This, in turn, shows the proportion of BTC supply that consists of the actual roof of the person who last moved a certain time ago.

At present, 62% of the redeemed maximum are unused trade withdrawals (UTXOs) from six months or more.

For Ki, this floor space represents a BTC price, as has been the case in history – and most importantly in the March 2020 COVID-19 collapse.

“$ BTC is approaching the bottom of the circle,” he concluded:

“Now UTXO older than 6 months take 62% of the redeemed maximum. In the large sales in March 2020, this indicator also reached 62%.

Bitcoin realized UTXO bands against BTC / USD chart. Source: Ki Young Ju / Twitter

CryptoQuant previously reported UTXO data as related to the size of Bitcoin investors, but drew more conservative conclusions.

Last week, it appeared that the largest Bitcoin whales were still spreading their holdings on a chain, while smaller whales could probably be supporting the market and preventing a fall in March 2020.

Attitude indicates “long-term buying opportunity”

It takes a lot of bullish price action to shift attitudes to green in the current environment.

Related: Top 5 Currencies to Watch This Week: BTC, ETH, XTZ, KCS, AAVE

This applies to both Bitcoin and cryptocurrencies elsewhere, where investors have endured more than six months of what has been an almost unmarked disadvantage.

This is still the case this week – despite rising overnight, the sentiment remains in the “extreme fear” zone over Bitcoin and altcoins.

The Crypto Fear & Greed Index is only 10/100 as of May 30, a point that has followed the price level of generations in previous years.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

May 2022 has been a particularly difficult period for attitudes, as Fear and Greed reached only 8/100 earlier this month – a point that is rarely seen and last appeared in March 2020.

“Fear & Greed Index down to 10 today,” said Philip Swift, creator of the LookIntoBitcoin chain analysis platform. answered:

“We have spent three weeks in Extreme Fear now with pricing measures aside. Possible bottom formation? ”

News commentator and expert Scott Melker, known as Wolf of All Streets, added that regardless of what might come next, attitudes showed “long-term buying opportunities.”

“People are getting scarier,” part of a Twitter post read.

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.