Bitcoin (BTC) begins a new week by pressing key resistance as…

Bitcoin (BTC) begins a new week by pressing key resistance as it approaches the May monthly close.

BTC price action keeps the bulls in check as old all-time highs are difficult to reverse in the face of resistance. Could the price drop to $69,000 by June?

A quiet start to the week sees Memorial Day in the United States suspending institutional activity until May 28.

However, later, macroeconomic catalysts are heating up in the form of US data which, as always, is a major pivot point for cryptocurrencies and risk assets.

Meanwhile, Bitcoin has its own hurdles to overcome: stabilization below all-time highs has been underway for over two months, and a solution to the status quo remains elusive.

Many bullish Bitcoin price predictions are circulating, some with a six-figure target for BTC/USD in 2024, but fears of a deeper correction linger in the background.

With the market at a critical point, Cointelegraph examines the factors that are expected to move it as the end of May approaches.

BTC price consolidates at key $69,000 level

Bitcoin experienced a classic price surge over the weekend, surging above $69,000 but retreating after the weekly close, data from Cointelegraph Markets Pro and TradingView confirm.

BTC/USD one hour chart. Source: Commercial View

In doing so, he effectively closed the last “gap” in the CME Group’s bitcoin futures markets – even as the United States shut down for the Memorial Day holiday.

“Basic price action this weekend so far,” popular trader Daan Crypto Trades wrote in a response to X (formerly Twitter).

BTC/USD chart with CME Bitcoin futures data. Source: Dan CryptoTrades/X

The weekly close, at around $68,500, was the strongest for Bitcoin since early April.

Commenting on the latest developments, physical trading resource indicators highlighted the need to turn $69,000 into strong support.

“BTC’s green weekly close is offset by another failed attempt to reverse the $69,000 R/S and a new pre-trend recognition signal (downward) on the W chart,” reads part of X’s message, referring to one of the proprietary materials trading indicators. tools.

“For me, a break above $71,250 is a no-no.”

BTC/USD chart with trading signals. Source: Physical Indicators/X

The latest data from resource monitor CoinGlass, meanwhile, shows that key liquidity zones are piling up around the spot price, leaving traders guessing which one will be taken first.

At the time of writing on May 27, $68,100 and $69,800 were key interest levels, the latter amid a “cloud” of liquidity in order books.

BTC liquidation heatmap (screenshot). Source: Coinglass

“Bitcoin aims to consolidate at these levels,” summarized Michael van de Poppe, founder and CEO of trading firm MNTrading, today.

“Where can I buy?” I’m down $66,000 and I think we’ll test the lower range and buy there again. “That’s where you want to prepare your purchases.”

Bitcoin/USD chart. Source: Michael van de Poppe/X

Eruption or collapse?

The direction Bitcoin takes once it breaks out of its current range is a major concern for some market observers.

Consensus is forming around an upside breakout, but the extent of the market’s rise remains a matter of debate.

As Cointelegraph reported, calls for $95,000 in June and up to $150,000 by the end of the year are being reinforced by its own sources.

Popular commentator BitQuant, the creator of the previous prediction, suggested last week that range-bound Bitcoin price declines should be ignored.

“The only thing I know for sure is that Bitcoin will hit $95,000,” insisted in another article on X.

At the same time, Daan Crypto Trading acknowledged that historical precedent was on the side of the bulls: long periods of consolidation below all-time highs led to bull market breakouts during previous BTC price cycles.

“It is now trading off previous cycle highs for about 11 weeks. In 2017 it took around 4 weeks. In 2013, this took around 13 weeks.

“Both led to massive expansion afterwards. “I also don’t expect the BTC price to drop this time around, once it breaks through this price range.”

BTC/USD chart with price cycle comparison. Source: Dan CryptoTrades/X

However, some still have a larger correction as their base case.

Among them is popular trader Credible Crypto, who continues to eye the region of what will likely reach around $60,000 next.

This weekend, Material Indicators added that it was “fully prepared” with a return of $60,000.

“Right now, there is not much liquidity sentiment below $60,000, so it is expected to hold for an extended period of time,” she concluded.

Bitcoin price halved ‘priceless’

For popular traders and analysts, the latest Bitcoin block support halving is “off the table.”

In a YouTube video last week, Rekt Capital argued that despite the comings and goings of the past month, the halving remains a very important catalyst for Bitcoin prices.

He says Bitcoin is still in a “reaccumulation phase” after the halving – and the consolidation it brought has historically lasted up to 160 days.

“The longer we can consolidate here, the better for Bitcoin,” the video says.

However, Rekt Capital said a continuation of the uptrend “will inevitably occur” once these phases end.

He added that for this “most parabolic phase of the cycle,” a price target for Bitcoin of around $150,000 is appropriate.

Meanwhile, late this week, it was suggested that BTC’s short-term sideways price action could take several weeks to resolve.

BTC price cycle comparison (screenshot). Source: Réagir Capital / YouTube

Personal consumption expenditure data leads for the entire week

With U.S. markets closed until May 28, Bitcoin has little momentum in the event of major external swings during Wall Street business hours.

The Asian trading session did not bring any surprises, so attention was focused on the end of the week.

Here, US macroeconomic data returns, headlined by the Producer Price Index (PCE) – known as the Fed’s preferred inflation measure.

The general mood remains conservative regarding risky assets which benefit from the Fed’s policy easing. Interest rate cuts are not expected until September or later, and other inflation data remains mixed.

Despite this, US stocks continue to record all-time highs.

“Short but busy week,” wrote trade source The Kobeissi Letter, acknowledging the stock’s trend in its weekly macro log with X entry dates.

Commenting on the trends in stocks and Bitcoin, Mosaic Trading Assets saw mixed conditions which ultimately favored risk sentiment.

“Daily momentum indicators such as the MACD and S&P 500 Relative Strength Index have been extended, indicating the potential for a downward average retracement. “While I wouldn’t be surprised to see a partial retracement of recent stock market gains, I expect any downward trend to be just a temporary pause in the bull market,” she said. writes in an edition of its regular newsletter, “The Market Mosaic.” .” May 23.

Mosaic is also moving towards a bullish breakout in BTC/USD going forward.

“Risk asset classes are particularly sensitive to easing conditions, which is why I am closely following developments in Bitcoin stocks and cryptocurrency mining for further confirmation that the bull market is intact,” she continued, referring to Bitcoin’s two-month consolidation.

“The price has been rising on the right side of the base over the past month and could pave the way for a move towards new highs. This breakout will provide further evidence that investor appetite for speculative assets remains strong.

BTC/USD vs S&P500 weekly chart. Source: Commercial View

BTC whales remain in the game

When it comes to “buying the dip,” some groups of Bitcoin investors are wasting no time below $69,000.

Related: Traders hope for ‘crazy pump’ as altcoins near key resistance levels

This week’s focus is on Bitcoin whales, the largest of these whales, which have been particularly active as the price advances and remain near all-time highs.

“Bitcoin whales are buying like never before,” commented Vivek Sen, founder of Bitcoin PR firm BitGrow Lab, alongside data from on-chain analytics platform Cryptoquant.

Data shows that the balance of active whale addresses over the past 24 hours stands at almost half a million Bitcoin – by far the largest on record.

BTC balance from active whale addresses. Source: Vivek/X

Cointelegraph continues to report whale interest in Bitcoin, with Cryptoquant describing it as being in “acceleration mode” earlier this month.

It revealed that “Bitcoin demand growth appears to be stabilizing after following a slowing trend since March.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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