All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Analysts are keeping a close watch on the trading volumes for Bitcoin and other crypto assets to determine the sentiment for any sort of directional move.
- On the downside, the crucial support for Bitcoin is in the range of $26,800-27,000. Any further fall beyond this will confirm a bearish divergence.
After a strong bounceback on Monday, May 15, Bitcoin (BTC) and Ethereum (ETH) continue to hold above the crucial support levels. As of press time, Bitcoin (BTC) is trading at a price of $27,241 with a market cap of $527 billion. On the other hand, Ethereum (ETH) continues to trade at $1,822 with a market cap of $219 billion.
Going ahead, trading volumes will be a key metric to watch since it could mute or amplify the sentiment behind any kind of directional move. Jeff Dorman, chief investment officer at the digital-asset manager Arca, said that the bid/ask spreads, especially after two of the biggest market makers in the US – Jane Street and Jump Crypto – decided to exit the market. Dorman added that “The prices of most digital assets are stuck in a wind tunnel”.
Interestingly, the action in the traditional financial market also remained silent as traders are trying to understand whether US lawmakers would agree on a plan to avoid a default by the federal government. With Treasury’s borrowing going pretty close to the official limit, it will be crucial to see whether the US Congress agrees to increase the debt ceiling.
Where’s Bitcoin Moving Next?
Over the last few days, the world’s largest crypto Bitcoin (BTC) has seen some retracement after facing rejection at $30,000. As of now, Bitcoin is trading in a very tight range of support and resistance, and pretty close to the 200-day moving average.
As of press time, the Bitcoin (BTC) price is trading above the crucial support level of $27,200. Popular crypto analyst Michael van de Poppe stated that as long as Bitcoin continues to hold above the 200 MA and EMA, the BTC price can continue its journey towards $38,000-42,000 from here.
But over the last few hours, Bitcoin is facing some selling pressure and trading above $27,200. Poppe added:
Sigh, #Bitcoin is again chopperino. Rejects at first resistance point, has a must-hold zone between $26,800-27,000. If that’s lost, we’ll probably cascade towards <$26,000 for a potential bullish divergence. Holding here would be good, needs to break $27,500 then.
Also, the perpetual futures funding rate remains positive for both – Bitcoin and Ethereum. This shows that the overall market sentiment is still positive.
The crypto funding rates usually help in identifying whether the market sentiment is bullish or bearish. For 8 out of the 10 recent trading sessions, the Bitcoin funding rates have remained positive. Similarly, Ether (ETH) has shown positive funding rates for 7 out of 10 trading sessions.
