Bitcoin retested the resistance on its way up to $ 60,000 and was pushed back in support. At the time of writing, BTC is trading at $ 57,500 with sideways moves on the lower and upper timeframes.
BTC is moving sideways on the daily chart. Source: BTCUSD Tradingview
Anonymous trader IncomeSharks set the support at $ 53,000, with $ 59,000 being an initial price target that BTC was able to meet. However, the selling pressure on this brand appears to be high as many retail investors are still driving the price movement.
In the coming days, trader Pentoshi expects the price of BTC to gain enough momentum to break resistance to the detriment of altcoins. As the trader explained, Bitcoin’s dominance could recover in the short term after falling below 50%:
I think $ BTC will erupt on a massive scale next week. 90-day range PoC is a confluence with all 4-hour emas, both of which serve as support. The last thing I want to do is be overexposed on this step.
Analyst Willy Woo shares the same thesis and predicts an imminent migration of capital from Altcoins to BTC. As shown below, BTC’s dominance has entered a “high likelihood” zone for a trend reversal, as Woo claimed.
Source: Willy Woo
Many investors wonder if BTC has made a local peak, like it did in January 2018 when a three-year bear market began. However, Woo believes that this cycle has different indicators, with many BTC moving from short-term investors to “strong holders”.
Source: BTC offer goes into strong hands
As seen above, BTC had a parabolic run in 2017 and the number of coins held by short-term investors increased. The opposite happened in this bull run. As BTC’s price rises, the percentage of its supply to long-term holders increases in “unprecedented” ways. Woo added:
In no case are we entering a bear market. This is evident from price action this week, but not as apparent 2 weeks ago when the sky fell. Coins flowing into corporate treasuries are likely to have an impact.
Bitcoin’s Fundamental Support Bullish Sentiment
Several BTC indicators point to a price increase. The analyst William Clement said that the supply of Bitcoin, which is held by companies with 100 to 1,000 BTC, has similarities with a consolidation phase in January.
At this point the metric registered almost no oscillation until it increased. This coincided with BTC’s price gaining momentum, reaching new all-time highs. As can be seen below, the graph appears to be similar.
Source: Glassnode via William Clemente
In April, the derivatives market for BTC recorded strong fluctuations in the refinancing rate on all exchange platforms. In contrast, May was more stable for this sector, with funding rates below 0.05%, suggesting a “healthier” price move.
BTC’s May funding rates show stability. Source: Glassnode via William Clemente
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