BTC price breakout due ‘relatively soon’ as Bitcoin volumes spook traders

Bitcoin (BTC) disappointed bulls on upside prior to the May 26 Wall Street open as BTC/USD returned under $29,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Markets “eerily calm” post FOMC

Data from Cointelegraph Markets Pro and TradingView tracked an uninspiring day for Bitcoin, with $800 of losses coming in a single hourly candle several hours before the start of trading.

The largest cryptocurrency had avoided volatility on the release of minutes from the United States Federal Reserve’s Federal Open Markets Committee (FOMC).

These had avoided any serious divergence from already known facts about economic policy, and despite concerns anti-inflation measures could lead to a recession, no mention of the word “recession” appeared in the minutes.

Even legacy markets remained comparatively cool, with analyst Dylan LeClair describing the situation as “eerily calm” based on volatility data.

Cointelegraph contributor Michaël van de Poppe, who on May 25 had predicted a move towards $32,800 for BTC/USD, reiterated that a breakout from its current trading zone was “coming relatively soon.”

Breakout is coming relatively soon for #Bitcoin and if we combine that with FA, then we can clearly assume that;
– Jobless claims
– PCE inflation

Are going to be the trigger. If inflation slows down or jobless claims are fine, the FED might be slowing down the policy.

— Michaël van de Poppe (@CryptoMichNL) May 26, 2022

For the meantime, however, on-chain signals meant that there was likely no impetus for significant price changes, according to fellow trader and analyst, Rekt Capital.

Analyzing on-chain volumes, it became clear that neither buyers nor sellers were prepared to make a bold statement at current levels.

“Previous periods of high sell-side BTC volume preceded periods where buyer volume started trickling in in the following weeks. But now, we’re seeing that a) seller volume is declining over time. And b) no $BTC buyer volume has come in following the high seller volume,” he explained to Twitter followers on the day.

BTC/USD 1-week annotated chart. Source: Rekt Capital/ Twitter




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