Bitcoin Gains Technical Stability
• Bitcoin has held a key support level, leading some to believe bullish trends will emerge in the coming weeks and months.
• The dollar’s dip in value could be why BTC has endured a small slip, but some are still optimistic for its future.
• Long-term wallets have been holding coins for at least six months prior to press time.
Positive Signs Emerging for Bitcoin
Positive signs are emerging for bitcoin on technical charts. The world’s number one digital currency by market cap is holding a key support level that could insinuate bullish trends will again emerge for the asset in the coming weeks and months. Bitcoin fell by nearly six percent in mid-May, however it has since risen by more than one percent and is trading in the low $27K range.
Tied to USD
Some believe this is because bitcoin has been largely tied to USD as of late, a sudden and interesting change for the world’s top digital currency. With the dip the dollar has taken in value, this could be why BTC has endured a small slip. Alex Kuptsikevich – senior market analyst at FX Pro – said in an interview: “By defending this key average, the bulls have convinced the market of the sustainability of the long-term bullish trend.“ He further stated that there are many cautious buyers in the mix as of late, and if they’re going to come back to the trading scene, bitcoin will need to reach a price of at least $28,500.
Others are more positive towards BTC and say that as the dollar continues to heal itself and rise through the price ranks, bitcoin will as well. Ilan Solot – co-head of digital assets at Marex – explained: “I think the dollar is due for a bounce as markets take back some Fed easing implied in futures curve.“ Depending on how violent upswing gets, it could cause some short-term damage to assets like commodities and crypto according to Swiss Block Insights analysts who mentioned: “The DXY could hit anywhere from 104 to 107 considering it crossed over 102 level since mid-March… This month-long structure will eventually break, and both assets will experience price discovery.“
Wallets Holding Coins
Finally Solot pointed out there are many long-term wallets that have held coins for at least a six-month period prior to press time.