Bitcoin (BTC) stayed glued to $30,000 on May 23 as the start of Wall Street trading failed to spark volatility.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin to range before “real breakout?”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD lingering in a tight trading range in place since before the weekend.
The pair had closed out the week on its eighth weekly red candle in a row, this becoming a bearish record amid an absence of overall price trajectory.
Amid consensus that the macro bottom was not yet in, bullish BTC price forecasts were few and far between on the day.
For on-chain monitoring resource Material Indicators, however, there were signs on the day that market participants were preparing for the upside to come before any capitulation.
“The TA looks good, the market is calling for a rally and the indicators are pointing long, but that doesn’t mean it has to happen the way you think,” it tweeted.
“FireCharts shows resistance ~$30.7k and more stacked ~$32k. BTC could range before a real breakout.”
The accompanying chart identified buy and sell levels on the order book of major exchange Binance.
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
A preceding post admitted that creator Material Scientist did not believe that Bitcoin had yet bottomed, while technical cues were still pointing to incoming gains.
New #BTC Weekly Candle has closed as a Bullish Hammer candlestick$BTC #Crypto #Bitcoin pic.twitter.com/S9Q3aiI4Er
— Rekt Capital (@rektcapital) May 23, 2022
Supporting the bullish thesis was the weekly chart post close, which popular trader and analyst Rekt Capital noted had delivered an encouraging formation.
DXY extends decline
Macro conditions were driven by United States cues on the day, with President Joe Biden’s China trade tariff easing plan boosting markets before the open.
At the time of writing, the S&P 500 was up 0.66%, while the Nasdaq 100 likewise avoided further losses.
In a further boost for risk assets, U.S. dollar strength also continued to decline, with the U.S. dollar index (DXY) retracing further from its twenty-year highs.
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView
“DXY deviation stretching further down. Expecting lower unless 104 can be reclaimed,” commentator Johal Miles commented.
Analyst Kevin Svenson, meanwhile, said that it would be stocks that decided where BTC/USD went next.
“BTC is 1–2 days away from giving us some fireworks,” he tweeted.
“Which way will it go? … the Stock Market will decide Bitcoin’s fate.”
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