Bitcoin prices are fighting to stay on an ascending trajectory, as the market bellwether aims to rejuvenate after the post-halving decline. BTCUSD returned above the psychological $60,000 mark on May 5, but has closed the day in the red in the last two days. As of this writing, BTC trades at $62,256, having lost 0.10 percent in the intraday session. With the US dollar remaining strong, dollar-denominated assets such as gold and Bitcoin have come under pressure. That said, there is a rising expectation that Bitcoin’s return above the $60k mark could be an indicator of an imminent breakout.
However, the push and pull between buyers and sellers in the last four sessions has built a neutral-to-bearish-leaning momentum that will likely keep BTCUSD in a tight range in the near term. Unlike the previous halving, this year’s halving has little action in the form of changes in the crypto coin’s market fundamentals. The Bitcoin ETFs are already here and there is a notable silence among institutions in as far as Bitcoin adoption goes.
Furthermore, the regulatory environment is better-defined than what we had in the previous years. While these factors have helped reduce the legal risks associated with Bitcoin, they have also helped create a level of “boredom” in the crypto market. The high-risk/high-reward sentiment around Bitcoin is no longer in play, minus the thrill.
However, on the flip side, a return to the upside is likely to be seen once the effects of the reduced supply of BTC start being felt. Also, there is the likelihood that many investors will hold on to their Bitcoin in the hope of selling at a profit once the post-halving price gains kick in. As of this writing, the volume of BTC inflows into exchanges in the last 24 hours is down by 14%, according to Chainalysis.
Technical analysis
The momentum on BTCUSD signals that the sellers are currently in control. In addition, the downside movement will likely continue if resistance persists at 62,525.53. That could help the sellers break the first support at 62,090.30 and potentially as low as 61,655.06 in extension.
However, if the pair moves above 62,525, you can fancy the buyers to take control, and build the momentum to move to 62,929.68. An extension of the control by the buyers will likely break the resistance, at which point the downside narrative will become invalid. In addition, that momentum could result in a push to test 63,288.01 in extension.
