Bitcoin is falling to fill CME vacuum as analysts say it will take two years to reach new highs

Bitcoin is falling to fill CME vacuum as analysts say it will take two years to reach new highs

Bitcoin (BTC) became stuck with “range holdings” on May 24 as prices avoided potential volatility.

One hour candle chart of the BTC / USD (Bitstamp) pair. Source: Trade View

BTC bulls are not happy after DXY decline

Data from Cointelegraph Markets Pro and TradingView show that the BTC / USD pair pulled back about $ 29,000 after failing to maintain the $ 30,000 support.

On the scales of the hours, the two followed a common pattern of swings between the two zones, refusing to explore a more extreme territory up or down.

“The critical breakout for bitcoin is the $ 29,400 area again. If that happens -> next trial at $ 30,000,” abstract Cointelegraph contributor Michaël van de Poppe in his latest Twitter update.

“Overall, fork holding moves”.

The ongoing annual meeting of the World Economic Forum also failed to introduce any significant signs of market movement in its early days, as bitcoiners in Oslo gathered for what the head of strategy at the Human Rights Foundation, Alex Gladstein, said. a called the “diametrically opposed” Oslo Freedom Forum.

The BTC / USD pair still managed to close the disadvantage gap in CME futures, which opened at the end of the previous week.

“US stocks are showing signs of a reversal this week. $ BTC has fallen, and it will return to them now. A very clear CME gap has been filled. Do not leave behind,” he said. for follow – up work the famous Twitter account IncomeSharks.

CME bitcoin futures 1 hour candle chart. Source: Trade View

Continuing the theme of macroeconomics, market commentator tedtalksmacro offered an explanation as to why crypto assets and more general risk were no longer benefiting from the new weakness in US dollars.

The US Dollar Index (DXY) was at 102 on the day, a 3 point decline from the 20 – year highs seen last week.

You’d think a decline in the dollar index would mean a rise in stocks and #BTC but it’s not! DXY is moving lower due to hostile comments from the ECB and not due to a natural increase in risk appetite… so cryptocurrencies and equities have no impact.
(Euro represents ~ 58% of DXY)
– tedtalksmacro (@tedtalksmacro) May 24, 2022

Two years waiting for $ 69,000?

Looking ahead, significant gains for bitcoin were expected to be scarce.

See also: The current bitcoin arrangement creates an attractive risk rewards situation for bulls

For Il Capo of Crypto, the Twitter commentator best known for his calm stance on BTC ‘s price expectation, owners should only expect to break above the current high of $ 69,000 in 2024.

That year will mark the first half of the next bitcoin block subsidy, when the reward given to miners will decrease by 50%, from 6.25 BTC to 3.125 BTC per block.

No. I expect a good recovery from this last phase of the downturn (100-500% asset-based rebounds), but later this year we could continue to mark the market. I don’t expect new ATHs until mid to late 2024 (after the other half)
– il Capo Of Crypto (@CryptoCapo_) May 24, 2022

The general consensus is already in favor of a new “capitalized” type event that would bring the BTC / USD pair back below the $ 23,800 low reached in May.

As Cointelegraph reported, current spot price developments are putting increasing pressure on miners’ profitability. The difficulty with a decrease of 3.2% was estimated on May 25, the largest downward shift since July 2021.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Every investment and every trading operation involves risk, you should do your own research before making a decision.

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