Coinbase’s IPO has drawn attention to the cryptocurrency market. This was the first public listing of a major cryptocurrency exchange, which resulted in high institutional demand.
As a result, the cryptocurrency market has moved upward and the price of BTC has reached new all-time highs above $64.00. However, bitcoin and Ether (ETH) were almost expected to fall after that, as cryptocurrencies tend to sell off after a big event.
Another major factor contributing to the price drop was the relatively high funding ratio of the coveted bitcoin. That, along with strong technical resistance at $64,000-65,000, is likely why BTC tested support at $60,000 after the hype surrounding the Coinase IPO began to wane.
Putting money into bitcoins. Source: Bybt.com.
At the same time, the $60,000 mark is a major price point for bitcoin, as it took BTC about a month to cross that level.
Therefore, it is important for bitcoin to stay in the $60,000 area to maintain its bull market structure in the coming week.
Traders predict the future.
Meanwhile, cryptocurrency traders are mixed on where bitcoin is headed with its new weekly candle.
For example, Cantering Clark, a popular cryptocurrency derivatives trader, said the market is not necessarily bullish or bearish based on options data.
The open interest rate in the bitcoin options market fluctuates. Source: Bybt.com.
Instead, Clark noted that the trend in the options market shows that bitcoin is likely to have a sideways move, which would mean consolidation around $60,000. He wrote:
50k and 80k hit the highest contracts/standards for $BTC, I think these writers will be happy, and I still think the change from late April to May is starting to make bitcoin less profitable long. No breakout, just a range and rotation.
In the long run, traders remain optimistic about bitcoin. A pseudonymous trader known as Crypto Capo noted that, based on historical trends, bitcoin has broken out of a range going back 1,000 days.
The trader stressed:
Now, a technical analysis of the $BTC. Bitcoin has broken out of its 1,000+ day accumulation range. This usually leads to a long extension. The current increase over the previous TSR is only 200%.
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