Bitcoin (BTC) is Moving Sideways: Is it Setting Eye for the Moon this Week?

Bitcoin price against the US Dollar (BTC/USD pair) has retested the US$60,000 psychological resistance. However, it pushed back to support. At press time, the BTC price was hovering around US$57,500. The leading crypto was trading sideways in the lower and higher timeframes.

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Many traders believe that US$53,000 will act as strong support and US$59,000 will act as a strong resistance initially. At the US$59,000 level, the selling pressure is appearing to be higher. Pro trader Pentoshi believes that Bitcoin price will gain enough momentum in the coming days and will eventually break the strong resistance at US$60,000. As the US$60K resistance is broken above, the crypto market dominance of Bitcoin will again recover from the current 44% to above 50%.

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On the basis of his technical analysis, Pentoshi said:

I think $BTC is going to break out in a big way this next week. 90 Day range PoC is confluence with all 4hr ema’s both acting as support. Last thing I want to do is be over-exposed on this move.”

Willy Woo, a renowned statistician, and crypto analyst, also said that he believes there could again be a capital migration from altcoins to Bitcoin soon. He referred to charts and said that the dominance of Bitcoin has entered such a zone where a trend reversal is highly likely.

Many investors fear that Bitcoin price has reached a local top, a similar scenario as seen in January 2018 when a bear market was triggered. However, Willy Woo doesn’t agree with this kind of fear. He said that the ongoing cycle of BTC has different indicators. In fact, more and more “strong holders” are buying Bitcoins from its short-term investors.

Woo pointed out that in 2017, Bitcoin’s price rally was parabolic in nature. It was characterized by short-term investors buying most of the coins. However, during the current bull run, the percentage of Bitcoin supply to the long-term hodlers has increased in an unprecedented way.

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He added:

“No way are we entering a bear market. That’s obvious this week from price action, but not so obvious 2 weeks ago when the sky was falling. Coins moving to corporate treasuries likely making an impact.”

Analyst William Clement believes that the increasing trend of BTC supply being held by entities having anywhere from 100 BTC to 1,000 BTC has a very similar pattern of consolidation that was seen during January 2021. He also said that it was this consideration during January that led the Bitcoin price to reach new all-time highs. Clement said that the current chart has an uncanny resemblance with that of the chart in Jan’21.

Across all crypto exchange platforms, Bitcoin’s derivatives market witnessed high variations in the funding rate. In contrast, the month of May is more stable with the funding rates hovering below 0.05%, signaling “healthier” price action.

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