Bitcoin (bitcoin) gained new gains overnight before May 31, as the monthly close looked set to lock in a loss of about 15%.
Asking price over $33,000
This pair thus limits a the next day More bullish momentum, but that didn’t impress analysts, who generally viewed the moves as untrustworthy.
Those doubts continued on the day, with discussions over whether the recent gains amounted to a “dead cat rally.”
This is #BTC Is exercise real? I don’t think so. The price increase has been sold…
1- Spot market inflows > 3,500 BTC max (30.7k).
2- Negative Delta with a daily green candle of 4.5%. (delta divergence).
3- Also positive gamma. MM stops the market. pic.twitter.com/I1rEhjH0nq
— M_Ernest_₿ (@M_Ernest_) May 30, 2022
“BTC is poised for bigger moves. Before you jump in, remember that cryptocurrencies like to squeeze shorts and trap longs,” on-chain analytics resource Material Indicators wrote In one of several tweets in the past 24 hours.
“You can reduce risk by waiting for a confirmed breakout or false breakout. FireCharts shows where liquidity is in the order book. Closes every Tuesday.”
Meanwhile, order book data from major exchange Binance shows a sell-off of $33,500 to $61 million at the time of writing.
Crypto’s popular Twitter account, Il Capo, further continued the bearish stance, while acknowledging that the rally was the opposite of previous predictions.
A big push from the bulls yesterday. I was mostly wrong this week because I thought we were going down and didn’t expect a rebound. However, this uptick shows the same signs as the move away from above 45k-46k.
The bearish scenario is still in play. https://t.co/ktv0jbC6aY
– Crypto Chief (@CryptoCapo_) May 31, 2022
Researcher account Venturefounder Add to BTC/USD needs to reclaim the 200-day moving average near $43,000 to “recover a new bull market,” calling such a target an “uphill battle.”
whale waiting for the moment
At the same time, amid the low volume that accompanied the rally, more concerns were centered on whales.
As noted by Caue Oliveira, an analyst at Brazilian analyst firm BlockTrends, Bitcoin’s largest entity has yet to show confidence in the recent lows as a macro bottom line.
“The whales/institutions have not deployed all their firepower in the market!” he concluded in a twitter thread.
“These large entities continue to reduce activity, betting their cautious approach to the global situation. A closer look at their actions can provide a real signal of a real reversal.”
The accompanying chart shows a sharp drop in whale activity in May.
Oliveira went on to say that activity on institutional platform Coinbase Pro likewise suggests that most investors are on the sidelines.
Whalemap, a whale-focused monitoring resource, further argues that without a break above the 200-week moving average, Bitcoin has yet to enter a true macro bottom.
What are the opportunities now? pic.twitter.com/WoSDMip8mU
– Whale map (@whale_map) May 30, 2022
As of May 31, the moving average was around $22,200.
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