Bitcoin (BTC) fell along with US equities on May 31 when Wall Street’s return to slack began.
Stocks drive BTC price down again
Data from Cointelegraph Markets Pro and TradingView showed that the BTC / USD pair was down near $ 31,000 at the start of trading after markets returned from a holiday.
This development was in line with stock market indices, with the S&P 500 losing 1.1% at the opening and the Nasdaq composite index falling 1%.
With the volatility visible, previous doubts about the sustainability of bitcoin’s recent rise remain vivid among social media commentators.
I still think the rise in #BTC The price is fake. Obviously we do not know how high it will rise. But I have no doubt it’s pumped…
We can see a very negative delta on the daily time frame as well as imbalances in favor of sellers in the aggressive seller zone … pic.twitter.com/kcvffm9IFj
– M_Ernest_ ₿ (@M_Ernest_) May 31, 2022
I still think the #BTC price increase is wrong. Obviously we do not know how high it will go. But I have no doubt it’s loaded …
We can see a very negative delta on the daily time scale as well as imbalances in favor of sellers in the aggressive sellers zone… pic.twitter.com/kcvffm9IFj.- M_Ernest_₿ (@M_Ernest_) May 31, 2022
“Stocks are unlikely to reverse some of their gains over the past week,” analyst Jan Wuesterfeld wrote in the latest issue of his daily Bitcoin Market Intelligence newsletter.
“In my mind, if that happens, bitcoin will probably give up some of the gains made over the weekend and Monday (reconnection in this case).”
Others focused on untapped long-term price signals. Kevin Svenson, an analyst who contributes to the CryptoQuant on-chain analytics platform, pointed to the 20-month exponential movement of bitcoin (EMA) as a source of potential future challenges.
“In previous cycles, bitcoin went 6 -> 13 months below the exponential moving average 20 months after crashing below six. Our first month is just under the 20 month exponential moving average, ”he said. Explain.
“If human feeling occurs again, we will be below the exponential moving average of 20 months until (at least) November 2022… and the 13th of May is 2023.”
“No trend” distributed by minors
A potential silver lining for bitcoin came in the form of miner behavior.
Read also: “Mega-bullish signal” or “true breakout”: 5 things to know about bitcoin this week
In the middle of warnings that the cost price of the miners is now higher than the spot price, creating the threat of capitalization like the 2018 bear market is low, the data suggest that panic has not yet settled.
“Bitcoin miners are considered smart money and speculators in BTC markets,” CryptoQuant contributor and analyst Venturefounder wrote in a post of the day.
“As the price of BTC returns, bitcoin miners have not shown a net distribution trend, in fact, the net accumulation trend that began in July 2021 continues.”
An accompanying chart showed that miners increased their BTC reserves especially in the second half of May.
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