bitcoin
And other cryptocurrencies were little changed on Monday, with the digital asset trading in a historically narrow price range indicating that volatility is on the horizon. Traders will look to several catalysts as potential catalysts for the next big move.
Bitcoin price fell less than 1% in the past 24 hours to $26,850 and continued to fall below $30,000, a psychologically significant area that the largest cryptocurrency breached last month for the first time since June 2022 but failed to consolidate. .
“Although Bitcoin has been supported relatively well by its 100-day moving average (DMA) over the past week, it has been trending sideways and price action has been lackluster to Somewhat”. (Stock Ticker: Coin). If Bitcoin is rejected [around $27,200], should bring Bitcoin’s lower range back into play with…the target near $24,000. “
Cryptocurrencies have traded in a remarkably narrow range over the past week, with the seven-day price range of Bitcoin — at 3.4% — in one of the narrowest ranges over the past three years, according to analysts at crypto market intelligence firm Glassnode. “It is similar to January 2023 and July 2020, both of which preceded significant market moves,” Glassnode analysts said via Twitter on Monday. “There is likely to be high volatility on the horizon.”
It would take a catalyst to start a big move, and traders are looking to at least four forces.
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Duong, of Coinbase, cited three — two that could lead to selling pressure and one that could boost bitcoin.
The first is the disbursement of Bitcoin owed to creditors of Mt. Gox, a cryptocurrency exchange that collapsed in 2014, finally seeing Bitcoin distributed to creditors over the coming months in a process that could see a mass sell-off.
The second is a ruling by the Central Bank of Argentina against payments providers that carry out cryptocurrencies, which could force around 250,000 to 300,000 customers of one fintech group to sell their bitcoins and ether over the next month.
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The third is the latest move by stablecoin issuer Tether to allocate up to 15% of its regularly generated net operating profit to buying Bitcoin, in addition to the $1.5 billion in Bitcoin it holds in its reserves.
Broader macroeconomic stimuli are also looming, with bitcoins continuing to swing with
Dow Jones Industrial Average
And
Standard & Poor’s 500
In reaction to US economic data that may govern the future of interest rates. Talks about the US debt ceiling have also added another level of uncertainty to the backdrop of digital assets.
But interest rate expectations remain key, since the Fed’s aggressive campaign of rate hikes to combat inflation over the past year has been the driving force behind bitcoin’s slide from a late 2021 high near $69,000. Traders are regularly changing their expectations for the next Fed decision in June, with markets continuing to price in a huge chance of another rate hike, after previously ruling that possibility out.
“The recent economic data and the dovish outlook from the Fed’s speakers… support the idea of a June rate hike,” said Mike Crosby, acting CEO of stablecoin issuer poundtoken.io. “While Bitcoin and Ether have been consolidating in a narrow range over the past few weeks indicating uncertainty about the broader markets, a potential rate hike in June should give the cryptocurrency markets more clarity.”
beyond bitcoin,
ether
– Second largest cryptocurrency – down less than 1% to $1,810. Minor cryptocurrencies or altcoins have been mixed with
Cardano
by 1% and
ribbed
Slippage is 2%. Memecoins fell with
Dogecoin
down 2% and
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shiba inu
shedding 1%.
Write to Jack Denton at [email protected]
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