Is Bitcoin Price Really In Bull Market? Glassnode Data Suggest Otherwise
Bitcoin bulls are waning and bearish sentiment is picking up in the crypto market. The fear and greed index clearly indicates investors’ sentiment falling from a May high of 65 (greed) to 48 today.
Macro factors remain the primary reason behind that weakening Bitcoin price rally to $30,000 this month. Also, US Fed Chair Jerome Powell’s speech on Friday fails to give a clear direction and rate hike possibilities in the future. While President Joe Biden and Republicans are hopeful about avoiding the debt ceiling crisis, other issues continue to exist.
CME FedWatch Tool indicates a probability of a 25 bps rate hike in June, while DXY rises and the jobs market stays tight.
Also Read: US Fed, ECB, BOE Officials Calls For More Rate Hikes, Bitcoin Price To Fall?
Despite Bitcoin price recovering 75% this year, the bull market conditions remain weak. According to Glassnode, the total transfer volume moved on the Bitcoin network has declined to a current value of $2.73 billion per day. The network throughput fell 79% from its peak of $13.1 billion during the bull market in 2021.
The question now is whether the recent consolidation we’re seeing will end up in a new low, which may suggest lower prices. Experts predict a drop well below the 200-WMA to the crucial support of $24,800.
Also Read: Bitcoin (BTC) Price At “Inflection Point”, Big Move Happening In Cardano (ADA)
Will Bitcoin Price Breakout From Consolidation
In an earlier report by CoinGape Media, we detailed how whales and miners are selling their holdings amid a recent turn of events. This will put additional selling pressure on BTC price.
Popular analysts CredibleCrypto and Michael van de Poppe predict the consolidation is most likely over and BTC price should move higher. However, it’s important to consider the 50-moving average and Bollinger bands indicating a weak chart pattern.
Bitcoin is range bound, with $27,640 as resistance and $26,340 as support. The direction of the BTC trend will only be determined by a clear close outside this area.
Also Read: Ledger Co-Founder Clarifies On Backdoor and Security Risk In Open Source
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
