Waiting – Bitcoin (BTC) continues to trade above $31,000. Traders remain cautious, however, fearing yet another drop that could bring the cryptocurrency back below $30,000.
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A Head Above $32,000: A Rise With Bearish Signs?
The price of bitcoin goes up to $32,390 on Bitfinex today, May 31, 2022. It fails to hold above $32,000, however. Bitcoin is trading at $31,744 at the time of writing. The markets are currently entitled to a doji.
For trader Michaël van de Poppe, the fact that Bitcoin managed to stay above $32,000 is a sign that the $32,800 is “not very far off”.
The Material Indicators platform nevertheless urges traders and investors to be cautious. She emphasizes the need to wait confirmation of a breakout or a fakeout to mitigate risk.
Material Indicators shows in the chart below, that cash worth approximately $40 million is currently at the $31,000 level.
Other analysts even remain bearish despite what appears to be a solid comeback above $30,000.
This is the case of the analyst il Capo of Crypto who admits that the current rise goes against his forecasts. He believes, however, that Bitcoin remains bearish. The bullish move that took place yesterday would show “ the same signs as the move that deviated above 45k-46k “.
At the time, when Bitcoin was crossing $45,000-$46,000, the price of Bitcoin was certainly up, but trading volumes, open interest were down, and the funding rate was up.
The bullish move above $46,000 – which would look like the current rise – presented then according to il Capo of Crypto, bearish signs.
What would be the level that would confirm a real breakout? The trader Rekt Capital is rather interested at monthly closing level ideal for bitcoin. He believes that Bitcoin must end the month above $35,000in order to prevent the $35,000-$39,000 from becoming a resistance zone again.
The strong rise of yesterday, May 30, 2022, in the price of bitcoin is therefore not enough to convince many traders and analysts about the start of a real bullish recovery. Will the first days of June 2022 prove the most cautious?
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