On May 22, Bitcoin (BTC) attempted to establish $69,000 as a new support level after reaching local highs, leaving analysts on edge. Data from Markets Pro and TradingView highlighted a weakening in BTC’s price, which twice tested its old all-time highs from 2021. Despite trading above $69,000 at the time, which many considered a crucial support level, concerns remained prevalent among market watchers.
Material Indicators, a popular trading analysis source, emphasized the importance of BTC maintaining the $69,000 support level to validate a potential resistance-to-support (R/S) flip at the previous all-time high (ATH). Their proprietary trading tools indicated a “clear” downward trend on daily charts. They suggested that a move above $71.5k would invalidate their bearish outlook but warned traders to keep their expectations tempered.
Other analysts shared similar concerns about Bitcoin’s ability to sustain recent gains and push through resistance levels. John Bollinger, the inventor of the Bollinger Bands volatility indicator, expressed his apprehension about Bitcoin’s price action. He pointed out a two-bar reversal pattern at the upper Bollinger Band, which he said hinted at a possible consolidation or pullback instead of continued bullish momentum. Bollinger reassured that his concern was short-term and not fundamentally bearish.
The broader trading community had already started to speculate on a potential retracement in BTC prices. Renowned trader and commentator Credible Crypto were among those expecting Bitcoin to fall towards the $60,000 range or lower. He shared his analysis, highlighting that the initial support would likely be below the level where the recent impulsive move began, suggesting a potential correction.
A critical decision on United States spot Ether (ETH) exchange-traded funds (ETFs) loomed, which could significantly influence Bitcoin’s price trajectory. Filbfilb, co-founder of the trading firm Decentrader, commented on the situation, noting the implications of the ETF decision. According to Filbfilb, a worst-case scenario of an ETF rejection by regulators would merely return the market to its prior state before the recent price impulse.
Filbfilb also provided an optimistic outlook if the ETH ETF received approval. In such a scenario, he predicted that Bitcoin could reenter a phase of price discovery, potentially driving it to new highs around $80,000. This prospective boost from the ETH ETF decision was seen as a potential silver lining for Bitcoin, amidst concerns of retracement.
On May 21, the ETH/BTC pair reached its highest levels since mid-March, indicating a strong performance by Ethereum relative to Bitcoin. This dynamic further added to the speculative environment and the influence of regulatory decisions on both cryptocurrencies’ market movements.
Bitcoin’s attempt to solidify $69,000 as a support level faced skepticism from traders and analysts alike. Market sentiment was cautious, with warnings of possible short-term pullbacks and consolidation. The upcoming decision on ETH ETFs by U.S. regulators was a focal point, with its outcomes potentially dictating Bitcoin’s next significant movements. The interplay between Bitcoin and Ethereum in the market continued to captivate investors’ attention, hinting at the closely watched developments in the crypto landscape.
The constant struggle at these levels is exhausting. Are we ever going to see sustainable gains?
Patiently watching the $69K level. Consolidation is healthy in the long run.
Optimistic about BTCs potential! Hoping for a successful support at $69K!
Watching BTC closely. A strong support at $69K would be tremendous!
ETH/BTC pair outperforming doesn’t make me feel better about Bitcoin’s weak support.
The crypto market is certainly never dull! $69K is such a critical level!
ETH ETFs could be a game-changer for BTCs trajectory. Exciting times ahead!
Crypto games are always suspenseful! Enthralled by BTCs attempt to hold $69K!
The crypto space is so captivating! BTCs current movements are thrilling!
Credible Crypto’s analysis pointing to further decline isn’t helping my confidence in BTC.