Bitcoin is experiencing short-term bearish pressure as it trades around $94k, influenced by a weakening U.S. dollar and upcoming FOMC announcements. Whale investors show mixed reactions with continued accumulation from some players like Strategy and Semler Scientific. Market data indicates a $1.8 billion cash inflow for Bitcoin’s investment products, despite declining transaction volumes. BTC’s price may retest support at $91k before vying for the $100k mark.
Bitcoin’s recent price behaviour appears to betray its long-term bullish potential, with some analysts eyeing the short-term trajectory. Recent technical analysis suggests a bearish phase might be just around the corner, especially with significant market movements culminating from the volatile backdrop of the U.S. dollar’s weakening and forthcoming FOMC decisions. Last week, Bitcoin closed with what’s known as an inverted hammer candlestick formation, hinting at potential downward pressure, and this trend seems to bear out as BTC dipped below the $94,000 mark earlier on Monday. As of Monday, May 5, during mid-North American trading, Bitcoin sat around $94,195; that represents a decline of about 1.2% over the last 24 hours.
The response from whale investors shows a rather mixed sentiment at this juncture. Even as uncertainty looms with the impending U.S. Federal Funds Rate announcement and FOMC statement, larger players in the space remain active. Noteworthy names like Strategy and Semler Scientific have continued their accumulation, seemingly unfazed by the fluctuations in price. For instance, Strategy disclosed on Monday it had snapped up 1,895 BTC just last week, upping its holdings to approximately 555,450 Bitcoins. Similarly, Semler Scientific added 167 BTCs recently, consolidating its position further as a top Bitcoin Treasury Company in the U.S.
Interestingly, market analytics from CoinShares pointed to a robust $1.8 billion influx into Bitcoin’s investment products last week, underscoring ongoing institutional interest. Despite this, IntoTheBlock highlighted a sharper decline in large transaction volumes, down $139 billion in the past week on the Bitcoin network. It raises questions about demand dynamics among big players and whether it signals larger trends.
Looking towards the horizon, Bitcoin’s price since April 9 has seen a rise of over 18%, driven in part by U.S. political endorsements for the cryptocurrency. However, enthusiasm seems to be softening as BTC recently faced resistance around the $96.5k mark. An unfortunate breakdown from a rising logarithmic trendline further fuels worries about upcoming price struggles. With the MACD line crossing below the zero line, analysts suggest the short-term outlook is indeed bleak.
In light of current market trends, many believe Bitcoin may be poised to retest important support levels around $91k before potentially making a stronger push towards the elusive $100k mark. A watch on these price movements is crucial for investors and traders.
