The expert analyzed the market situation and explained how it could change in the short term
The opinions of experts may not coincide with the position of the editors. RBC-Crypto does not provide investment advice; the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
On Sunday, May 7, Bitcoin was trading at $28.9 thousand; over the past week its price has decreased by 1%. The specialist analyzed the market situation and assessed the prospects for the movement of the Bitcoin exchange rate over the next seven days.
BTC/USD28 969 -156 (-0,54%)May 07 15:59:10
"Buyers must fight"
BitRiver financial analyst Vladislav Antonov
The week did not start in the best way for Bitcoin, when, against the backdrop of weak Chinese statistics and a fall in the S&P500 index, the BTC/USDt pair dropped to $27,666. It would seem that the situation would only get worse, but on May 2, the recovery phase began thanks to the fall in the dollar index and support from US Treasury Secretary Janet Yellen. Bitcoin rose to $28,879.
However, there is still a danger to the US economy: if Congress does not approve an increase in the debt ceiling, the government will not be able to borrow additional funds and may find itself in a very difficult situation. Since 1980, the US government has shut down several times due to failure to raise the debt ceiling, including shutdowns in 1990, 1995-1996, 2013 and 2018-2019. Democrats and Republicans are not particularly worried about this.
RBC-Crypto launched monitoring of cryptocurrency exchangers. Choose a reliable exchange service with a favorable rate at yourcryptoex.ru.
After the publication of US labor market data on May 4, the BTC/USDt pair rose to $29,677. However, investors generally remain calm as the activity of cryptocurrency buyers remained low.
Meanwhile, news reports included information that the US Department of Justice has opened an investigation into Binance for possible violations of anti-Russian sanctions. Representatives of Binance, in turn, stated that the company complies with all US and international financial sanctions.
The scenario for continued sideways movement according to cyclical analysis is still confirmed. The start of a new rally on it falls on June 1.
According to BitRiver, buyers need to fight for the $31K level. They need to pass it for the price pattern on the daily timeframe to become bullish. Otherwise, the scales begin to tip towards the sellers.