Bitcoin price remained in firm bull territory despite it showing some signs of immense weakness
Bitcoin price has remained in solid territory for several weeks, despite some signs of weakness. Much of Bitcoin’s current strength comes from its SMA50 hold capacity. Quite a few analysts think this is the level that will determine the future of cryptocurrencies in the coming days and weeks.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price continues to fall into a sideways trading
Since the beginning of May, Bitcoin has established a trading range between $ 9,000 and $ 10,000. Over the past day, Bitcoin has faced so many severe declines at $ 9,300 that made it impossible to see any further bullish momentum.
Buyers who are unable to sustain the recovery that first appeared when the cryptocurrency rallied from the recent lows of $ 8,950 seem to be a grim sign. Nevertheless, many analysts believe that Bitcoin is still in a great mid-term position.
According to CryptoBirb, the ongoing consolidation of BTC took place after a noticeable break on the macro descending trend line. This is a completely positive factor in a longer time frame:
“Long-term perspective is still favoring bullish scenario rather than bearish, due to the fact that BTC / USD broke out above the long-term bearish trend and have been consolidating after the breakout, under the resistance since.”
Moreover, an important technical factor to consider in the near future is Bitcoin’s positioning compared to its SMA50 – a critical moving average that it is currently trading above.
This is a sign that Bitcoin is still very strong, as long as it is above this level, currently in the area between $ 8,000.
“As long as bitcoin provides trading above the 50-week average, exported leaning more towards 10.5k + targets and new highs. If closed below, then we talk MTF-HTF shorts.”
Once Bitcoin exits its consolidation phase, it will be imperative to monitor this moving average closely.
Bitcoin futures seen a rising premium – traders are bullish on the benchmark cryptocurrency?
Regarding the upcoming Bitcoin price rise, it seems that institutional investors are anticipating it to rise sharply because of the rising premiums seen while looking towards BTC futures on the CME.
According to Arcane Research, the premiums have not changed in the past week despite the narrowing consolidation channel of cryptocurrencies:
“June contracts are out of the way and didn’t even affect the bitcoin market. BTC is moving sideways and futures premiums are holding steady… The gap in premium between CME and retail-focused platforms is still present and fairly unchanged this week.”
Where these premium trends next will likely depend on which direction Bitcoin begins moving once its consolidation close comes to an end.
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