Bitcoin (BTC), which disappointed bulls before the May 26 Wall Street Open, saw BTC/USD return to below $29,000.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Markets are “eerily calm” after FOMC
Cointelegraph Markets Pro and TradingView data showed that a day of uninspiring bitcoin trading was recorded. There were $800 in losses within an hourly candle, several hours before trading began.
On the release of minutes by the Federal Open Markets Committee (FOMC) minutes, the largest cryptocurrency avoided volatility.
They had not diverged from known facts about economics and, despite fears that anti-inflation measures might lead to a recession in some quarters, there was no mention of “recession” in the minutes.
Even legacy markets were relatively cool with Dylan LeClair, an analyst, describing the situation in volatile data as “eerily tranquil”.
Michael van de Poppe (Cointelegraph contributor) predicted that Bitcoin/USD would move to $32,800 on May 25, and he reiterated that it was “coming relatively quickly.”
Breakout is imminent for #Bitcoin. If we combine FA with that, then it becomes clear that: – Jobless claims and – PCE inflation are going to be the trigger. The FED could be slowing down the policy if inflation slows or jobless claims are okay. pic.twitter.com/WCEgQhMvXm
— Michael van de Poppe (@CryptoMichNL) May 26, 2022
According to Rekt Capital, a fellow analyst and trader, the on-chain signals were sufficient to ensure that there wasn’t any impetus for price movements.
Analyzing the on-chain volumes revealed that neither sellers nor buyers were willing to make bold statements at current levels.
“Previous periods of high BTC sell-side volume preceded periods when buyer volume began trickling in over the next weeks. Now, however, we are seeing that a) the seller volume is decreasing over time. He also explained that no $BTC buyer volumes have come in after the high seller volume.” He shared this information with Twitter followers.
BTC/USD 1-week chart annotated. Source: Rekt Capital/ Twitter
Cointelegraph reported that the NVT Golden Cross, which is a long-term indicator designed to capture price tops and bottoms by volume, was reddened this week because it seemed that on-chain transactions weren’t significant enough to support $30,000 levels.
Dogecoin sets new altcoin rout records
Altcoins had a mixed day with Ether (ETH), which was clearly among the weakest major cap tokens.
Related: U.S. Dollar Index drops from 20-year highs — but can DXY topping spur a Bitcoin recovery
Except for the May 12th wick, ETH/USD traded at $1,815 on Bitstamp, its lowest level in 10 months.
Van de Poppe stated, “The question is whether we can bounce off here and break $1,940.”
“If that happens, then I assume we’ll continue $2,000.50. If it doesn’t, the markets will be looking at.
ETH/USD 1-day candle charts (Binance). Source: TradingView
Solana (SOL), on the other hand, lost 10% per day, while Dogecoin was at its lowest level since April 2021.
Chart of 1-Week Candle Chart (Binance) DOGE/USD Source: TradingViewcom. You should do your research before making any investment or trading decision.