- Bitcoin struggles to get past US$30,000 and stays stuck within a relatively tight range that it’s been held to for months.
- Few catalysts to fuel an interim rally for Bitcoin and technical analysts suggest that the benchmark cryptocurrency will need a sustained push towards US$40,000 for any durable rebound.
When cryptocurrencies were being dragged down by equities, investors called out for “decoupling,” and when stocks rebounded at the end of last week, those same investors hoped that the two would correlate once again.
And investors are getting whatever they wish for it seems, just not in the way that they had hoped as once again, Bitcoin and other cryptocurrencies get dragged down by the wave of macro uncertainty that is embroiling all manner of risk assets.
After rebounding on Thursday to over US$30,000, Bitcoin slumped below the key level of resistance yet again, to hover around a level where it’s been trading at for most of the past month.
Since the collapse of the TerraUSD algorithmic stablecoin, Bitcoin has only briefly deviated from the US$30,000 level, coasting to as low as US$28,000 at one stage and meeting stiff resistance at levels over US$32,000.
And now technical chart analysts are suggesting that Bitcoin could be forming a cyclical low in the second half of this year, based on previous market cycles, with some suggesting that Bitcoin is neutral, and any bullish turn will require the benchmark cryptocurrency to sustain a rally over US$40,000.
In the early part of this week and after the U.S. Memorial Day long weekend, Bitcoin staged a “catch-up” rally to hit a 3-week high of US$32,300 on Tuesday, giving some hope that it might yet gain upward momentum, only to disappoint as stocks sank into the week against a slew of worries from rate hikes to inflation and the ongoing war in Ukraine.
Analysts are noting yet again that cryptocurrencies and stocks have reverted back to their typically strong correlation, with Bitcoin particularly joined at the hip with tech stocks, both of which can be viewed as more speculative corners of the investing universe.
