Bitcoin on May 17 - Does the setup look like the start of a bear market?
Bearish signal on Bitcoin, but a false signal may still appear
The price of Bitcoin has risen by about 42% since the market's low of around $74,500. However, while buyers have dominated the market for several weeks, the price of the king of cryptocurrencies has sent a bearish signal technically. In fact, the 50-day moving average (green) has crossed down below the 200-day moving average (red). Thus, sellers may regain control.
With prices declining at the beginning of the year, exchange-traded funds (ETFs) have generally seen outflows. We have noticed for several weeks that inflows are in the majority, and Bitcoin has returned to nearly its recent all-time high. However, it is worth noting that contributions have been shy since May 5. In fact, daily inflows are below $400 million. It will take significant demand to force sellers to capitulate at the last all-time high price level.
Does Bitcoin continue to rise, or is the descent in control? Let us know your opinion in the comments.
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