Bitcoin´s price posts first green candle in 10 weeks, but watch out for further declines
By Noemi Jansana / Alejandra Zamora
Date: Monday 06 Jun 2022
(Sharecast News) - Bitcoin´s price managed to close a volatile week in the green on Sunday, with a gain of around 2%, snapping a losing streak of nine consecutive weekly candlesticks in the red. The digital asset par excellence is back above $30,000, up to $31,400 at the time of writing this (+5.6% in 24 hours), with a total capitalization of nearly $600 billion. The rest of the market is advancing as well, with Ethereum almost at $1,900 and most tokens in the green. Total capitalization stands at nearly $1.3 trillion.
Bitcoin´s been moving within a bearish trading channel over the past month, commented Alejandro Zala, country manager at Bitpanda in Spain. "The lower ranges have been defended on multiple occasions by the bulls, while the $30,000 level has represented a barrier too strong to be overcome for now. Although the consolidation period is always followed by a breakout sooner or later, Bitcoin still needs to regain support at the $32,000 level to attract more volume," the expert added.
Overcoming that barrier could generate a spike in buying pressure that could send prices towards the next resistance level of $35,000. "To confirm the start of a rebound we should wait for a close above $32,825," stated César Nuez, analyst at Bolsamanía. "If it finally manages to overcome this price level, it is very likely that we could end up seeing a rebound to the $37,300 level," he added.
Bitcoin dominance stands at 47% amid altcoins' losses. While Bitcoin remains relatively stable within its trading range, altcoins have been losing ground, with major altcoins suffering greater losses than BTC.
This has led to an increase in Bitcoin's dominance, which currently stands at around 47%. Over the past month, the dominance of the largest coin by capitalization increased significantly, as it hovered around 41% at the beginning of May.
All in all, this past week's price rise should be seen as merely a relief by investors, experts stressed, but not at all as a trend reversal. Some analysts suggested that this could be just a rally within a bear market and we could be on the verge of a new correction. In fact, for a trend change to occur, Satoshi Nakamoto's creation "would have to go above $48,200, prices 50% above current levels," explained Nuez.
If we look at the technical chart, Bitcoin is still trading well above its 200-day moving average. Historically, Bitcoin has bottomed around the 200-day moving average or just below, which is a 25% drop from current levels, according to Rekt Capital's analysis.
MINERS' SALES
According to Glassnode data, Bitcoin miners staged large sell-offs during the recent market correction. The data provider noted that, "Bitcoin miners have been net dealers since the recent sell-off. Miners' balances have recently declined at a peak rate of 5,000-8,000 Bitcoin per month."
Citing data from CoinMetrics, 'Bloomberg' reports that Bitcoin miners transferred nearly 200,000 Bitcoin to exchanges during last May. Among the sellers were major publicly traded mining companies such as Riot Blockchain. Will Foxley, chief content officer at mining hardware marketplace and hosting services provider Compass Mining, told Bloomberg, "I think miners are just talking about the macro environment and think it's probably prudent to sell Bitcoin at these levels to keep operations safe."
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