Bitcoin (BTC)At times it traded just over $39,500 and just under $39,500 as investors tried to dodge the worsening situation in Ukraine and the US raising interest rates by half a point in May. The price actually traded around the same levels on average over the weekend.
Bitcoin Follows Sideways, Other Crypto Assets Follow
Bitcoin had a quiet weekend, rallying over $42,000 on Thursday and Friday, followed by the US Federal Reserve Chairman. Jerome PowellA volatile weekend followed, which included a steep drop after the central bank said it was ready to raise interest rates more aggressively to tame inflation.
The Consumer Price Index is now at 8.5% and looks set to rise further amid the exacerbated supply chain bottlenecks over the past six weeks, with Russia’s unprovoked invasion of Ukraine following rising energy prices. Housing rents and product prices have also increased significantly this year.
Bitcoin slumped below $40,000, the midpoint of a three-month trading range, on Friday. Although the rise seems limited to the resistance level currently at $46,000, the cryptocurrency seems to be able to find support at $37,500.
A positive signal of momentum on Bitcoin’s daily chart was invalidated on Thursday, which typically precedes a period of price weakness. However, momentum remains somewhat positive on the weekly chart, suggesting that range trading may continue in the next few days.
Most technical indicators appear to be neutral, although a significant loss of upside momentum visible on the monthly chart increases the likelihood of Bitcoin price breaking below the one-year price range. Also, the recent increase in sell volume versus buy volume means traders are reluctant to maintain long positions after the 2020 crypto rally.
For now, the upward sloping 100-week moving average at $35,693 has managed to keep the uptrend intact. If the price breaks below this level, the next support zone will lie between $27,000 – $30,000.
The second largest cryptocurrency by market capitalization Ethereum (ETH), followed a similar weekend hold pattern and has recently dropped roughly a percentage point at around $2,930. Other top cryptos in the top 20 by market cap by CoinDesk, DOT and MATIC at certain points were mostly red with 4% and 3% respectively. Popular meme coins DOGE and SHIB have dropped more than 2% recently. Trading volume was light, as is usually the case on weekends.
The overall cryptocurrency market cap is valued at $1,800 trillion, with Bitcoin dominance at 41.2%.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.