This week's BTC rally is a bit unreliable, so don't take it seriously.
The nearly 8-point rally on May 15 has brought the expected bull market back to life, and the market is finally a little bit alive.
But be careful not to blindly go long!
The rebound in BTC was triggered by a lower-than-expected U.S. consumer inflation report, pushing prices above $66,000. At the same time, the S&P 500 and Nasdaq Composite also soared to all-time highs. The further Bitcoin is from $60,000, the less likely the market will hit new lows again. But this does not guarantee the start of a new uptrend. Because the fundamentals of the market's downturn are still there.
1. Strong performance of traditional assets. On May 16, the S&P 500 soared to a record high, with a total increase of 6% in 15 days. At the same time, gold rose 4% during the same period, approaching its all-time high closing price.
2. Bitcoin needs to rise another 12% to recover its highest closing price of $73,072. Given that price is the main driver, this seems unlikely given current market expectations: long at 60,000 and short at 65,000. However, this week, the trading volume of the seven major BTC spot ETFs in the United States reached $5.65 billion, the highest level since March 24.
3. The regulatory environment has deteriorated (especially Uncle Sam). Arrests, fines, and strict regulatory bills are being introduced and planned
The positive market effects brought about by policy expectations are often unreliable unless the policy is implemented. This month's consumer report is positive, but I don't know what it will look like next month? So, be steady!
The nearly 8-point rally on May 15 has brought the expected bull market back to life, and the market is finally a little bit alive.
But be careful not to blindly go long!
The rebound in BTC was triggered by a lower-than-expected U.S. consumer inflation report, pushing prices above $66,000. At the same time, the S&P 500 and Nasdaq Composite also soared to all-time highs. The further Bitcoin is from $60,000, the less likely the market will hit new lows again. But this does not guarantee the start of a new uptrend. Because the fundamentals of the market's downturn are still there.
1. Strong performance of traditional assets. On May 16, the S&P 500 soared to a record high, with a total increase of 6% in 15 days. At the same time, gold rose 4% during the same period, approaching its all-time high closing price.
2. Bitcoin needs to rise another 12% to recover its highest closing price of $73,072. Given that price is the main driver, this seems unlikely given current market expectations: long at 60,000 and short at 65,000. However, this week, the trading volume of the seven major BTC spot ETFs in the United States reached $5.65 billion, the highest level since March 24.
3. The regulatory environment has deteriorated (especially Uncle Sam). Arrests, fines, and strict regulatory bills are being introduced and planned
The positive market effects brought about by policy expectations are often unreliable unless the policy is implemented. This month's consumer report is positive, but I don't know what it will look like next month? So, be steady!