The cryptocurrency market continues to show volatility, especially regarding Bitcoin and certain altcoins. Bitcoin has slipped below the $109,588 mark, but technical analysts note buyer activity at each dip.
Current Conditions in the Bitcoin Market
Bitcoin (BTC) has fallen below the breakout level of $109,588, but investors continue to show buying interest. Data shows that on May 22, spot Bitcoin ETFs recorded inflows of $934 million, and $608 million on May 21.
Glassnode indicated that the total profit-taking volume after surpassing the historical high above $109,588 amounted to approximately $1 billion, significantly lower than the $2 billion observed when the price exceeded $100,000 in December. This suggests that investors anticipate further upward movement.
Veteran trader Peter Brandt mentioned in a post that Bitcoin is on track to reach between $125,000 and $150,000 by the end of August.
Forecasts for Altcoins
Ether (ETH) declined from the $2,738 level, indicating aggressive selling by bears. The ETH/USDT pair could fall to the 20-day exponential moving average at $2,388. If support holds, bulls will attempt to breach the $2,738 level again.
XRP (XRP) remains range-bound between $2.65 and $2, indicating a balance between supply and demand. A breakout above $2.65 could lead to a price increase to $3.70.
BNB (BNB) is facing strong resistance at the $693 level, but recent bounces from the 20-day EMA at $647 indicate potential support.
General Observations on the Crypto Market
During a strong rally, open interest in Bitcoin futures has risen, with CoinGlass data showing over $80 billion. However, excessive leverage can lead to sharp corrections in prices if pullbacks occur.
Investors are advised to be cautious and monitor critical support levels for Bitcoin and altcoins to avoid potential losses.
The cryptocurrency market remains under pressure, but trader and investor interest continues to be observed, which may lead to potential recovery in the future. It is essential to watch key levels of support and resistance.
