Will bearish Bitcoin in May be followed by bullish Bitcoin in June?
Bitcoin, the largest and best known digital currency, is trading near the support level of $26k. The currency that many say they don’t want to invest in due to the high volatility is caught in a pretty wide trading band between $26k and $30k. So quite bearish and boring.
So, what can we expect in June? Historically, the first month of summer comes out at a gain of 7% per month, so that would mean we’re still looking at the $30k mark.
Due to the staggering fall of 2022 (Bitcoin last year fell from $69,000 in November 2021 to about $16,000 in November 2022 after FTX went bankrupt), Bitcoin is struggling to attract new investors who are afraid of further fulls.
Been busy head down. Not a lot new to report. i like trends to ride and they're not there currently.#bitcoin + metals still appear to be in Weekly Cycle declining phases, into mid/late June. Feels like Stocks might have hit that same wall too, although too early to tell.— Bob Loukas (@BobLoukas) May 24, 2023
On the other hand, experienced crypto investors and Whales (larger accounts) seem willing to continue accumulating the largest of digital currencies below the $30,000 level.
The combination of investors who are fairly new and hoping for a continuation of Bitcoin’s fantastic Q1 growth (and are now selling as Bitcoin has a problem breaking $30k in the near term) coupled with Whales who accumulating every time Bitcoin dips below $27k makes for a fairly predictable trading band.
Support is to be found at the $26,000 level right now while resistance remains $28,500. According to Dutch analyst Michaël van de Poppe, Bitcoin should definitely break through $27k and hold that level for a few days before we can go to $29k again.
On the other hand, I just checked and the last time I wrote about ‘Bearish Bitcoin’ of ‘Boring Bitcoin’ multiple times in succession was in the fall of 2020, just before a massive bull run started, so maybe now is a good time.
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