{"id":260906,"date":"2021-05-28T01:10:00","date_gmt":"2021-05-27T22:10:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40000\/"},"modified":"2021-05-28T01:10:00","modified_gmt":"2021-05-27T22:10:00","slug":"market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40000","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40000\/","title":{"rendered":"# Market enters a &#8216;wait-and-see phase&#8217; as Bitcoin struggles below $40,000"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dd2a77a193\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dd2a77a193\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40000\/#Traders_remain_cautious_after_the_recent_sell-off\" >Traders remain cautious after the recent sell-off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40000\/#Bullish_indicators_abound\" >Bullish indicators abound<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Market enters a &#8216;wait-and-see phase&#8217; as Bitcoin struggles below $40,000 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Price action for Bitcoin (BTC) and the wider cryptocurrency market was relatively subdued on May 27 as nervous traders remain unsure of what comes next following last week\u2019s market plunge that saw leveraged traders wiped out as BTC dipped as low as $30,000 before its price rebounded.\u00a0<\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows that while Bitcoin&#8217;s price has managed to put in higher highs and higher lows over the past week, bulls continue to face stiff resistance at any meaningful attempt to break above $40,000 as bears defend the psychologically important level. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/9b9e2a5a-872b-48c8-815a-804c47483adc.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>For many traders, the recent correction likely triggered PTSD-like flashbacks of the market crash of 2017 and 2018 and the ensuing two-year crypto winter, and this could be a reason why the market seems indecisive at the moment.<\/p>\n<p>Given that many traders are unsure of what might come next for Bitcoin&#8217;s price, it&#8217;s wise to consider the various bullish and bearish scenarios that could play out and to also take stock of the opinions of analysts in the sector.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Traders_remain_cautious_after_the_recent_sell-off\"><\/span>Traders remain cautious after the recent sell-off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, it&#8217;s important to look closely at the recent market events and review the catalysts that created the current situation.<\/p>\n<p>Lifchitz told Cointelegraph that following an \u201calmost uninterrupted bull run from $10,000 in October 2020 to an all-time high for BTC at $65,000 in mid-April 2021,\u201d the market saw several waves of profit-taking ahead of the \u201cgreat deleveraging of 2021,\u201d which saw the price of BTC fall by 54% to $30,000, while Ether (ETH) and altcoins were hit even harder. <\/p>\n<p>According to Lifchitz, the correction succeeded in &#8220;drastically reducing the amount of leverage that prevailed in the ecosystem,&#8221; which can be seen as a healthy development for the overall market, as it will help &#8220;to build on a more stable base.&#8221;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/4f7c17b3-056b-4c96-ac9f-e79d077adaf1.png\"><figcaption style=\"text-align: center;\"><em>Estimated leverage ratio for Bitcoin. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/cqlab\"><em>CryptoQuant<\/em><\/a><\/figcaption><\/figure>\n<p>Lifchitz cautioned that while data shows that some early dip-buyers managed to pick up tokens near the lows, both volumes and futures open interest have remained weak, \u201cshowing no urgency to reload.&#8221;<\/p>\n<p>The monthly options expiration for Bitcoin and Ether are less than 24 hours away, and\u00a0Lifchitz believes they are standing in the way of \u201cany meaningful move in the very short term.\u201d He also suggested that it will be \u201cdifficult to convince burned investors to get back in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> just now\u201d due to a lack of upside catalyst and the recent reminder that \u201cprices do not always go up.\u201d <\/p>\n<p>This has put the market in a \u201cwait-and-see phase,\u201d according to Lifchitz, with both trend followers and contrarian investors needing \u201cto see some motion, either up or down\u201d before they engage in the market. <\/p>\n<p>Lifchitz said:<\/p>\n<blockquote><p>\u201cThe market definitely needs a catalyst, either upward or downward to move ahead. A too long period without any catalyst could lead to investors fatigue who might decide to cash out and seek other pastures, which would act as gravity on cryptos triggering a downward move. The next few days\/weeks will be very telling of what to expect next.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bullish_indicators_abound\"><\/span>Bullish indicators abound<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the average crypto trader is currently in a state of stasis and awaiting the next major market move to signal what BTC might do next, on-chain data indicates bullish moves from larger players who took full advantage of the recent dip by buying. <\/p>\n<p>According to Micah Spruill, managing partner and chief investment officer at S2F Capital, most of the selling that was seen at the recent lows \u201chas been from newer entrants to the market\u201d who have \u201cbeen selling at a loss and seem to be exhausted at this point.\u201d <\/p>\n<p>In a conversation with Cointelegraph, Spruill pointed to BTC net transfer volume, which shows that following the bearish downturn between May 17 and 20, \u201cMassive amounts of USDC and USDT have been sent to exchanges (to buy BTC, ETH, etc.) and pull them off to long term storage.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/4b7ed529-04e0-41c6-b0c4-0fb7926190e1.jpg\"><figcaption style=\"text-align: center;\"><em>BTC net transfer volume to\/from all exchanges. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/glassnode.com\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>Further analysis shows that retail wallets holding between 0.1 and 1 BTC, as well as whale wallets holding between 1,000 and 10,000 BTC, have been accumulating at these levels in preparation for an overall move higher. <\/p>\n<p>Another bullish indicator mentioned by Spruill is entities&#8217; net growth, which &#8220;is recovering back to prior levels\u201d and may signal that \u201cthe bull market is back in full force\u201d if this trend continues over the next few weeks and the metric resumes its highs. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/839a4c41-bd5a-4486-a959-040b59abab21.jpg\"><figcaption style=\"text-align: center;\"><em>Entities net growth for Bitcoin. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/glassnode.com\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>Overall, Spruill sees a positive move for BTC in the future, although the timing is questionable due to a variety of factors.<\/p>\n<p>Spruill said:<\/p>\n<blockquote><p>\u201cI think there&#8217;s a possibility we could spend an extended period of time (months) between the $30,000 to $42,000 level as the market digests recent events and we endure a mid-cycle re-accumulation period. Alternatively, it&#8217;s possible we have a COVID-like recovery whereby we see Bitcoin break outside this range soon and recover much faster than others are expecting.\u201d<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/market-enters-a-wait-and-see-phase-as-bitcoin-struggles-below-40-000\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Market enters a &#8216;wait-and-see phase&#8217; as Bitcoin struggles below $40,000 &#8221; Price action for Bitcoin (BTC) and the wider cryptocurrency market was relatively subdued on May 27 as nervous traders remain unsure of what comes next following last week\u2019s market plunge that saw leveraged traders wiped out as BTC dipped as low as $30,000&#8230;<\/p>\n","protected":false},"author":1,"featured_media":260907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvNzE4N2ZhOWYtZDhkOS00MGM4LWJhNmItMWVmMjI2NWNmMzk2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74972,81209,74937,74863,75012,74891,74939,73785],"class_list":["post-260906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-futures","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-derivatives","tag-ethereum","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=260906"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260906\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/260907"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=260906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=260906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=260906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}