Bitcoin (BTC) disappointed bulls on upside prior to the May 26 Wall Street open as BTC/USD returned under $29,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Markets "eerily calm" post FOMC
Data from Cointelegraph Markets Pro and TradingView tracked an uninspiring day for Bitcoin, with $800 of losses coming in a single hourly candle several hours before the start of trading.
The largest cryptocurrency had avoided volatility on the release of minutes from the United States Federal Reserve's Federal Open Markets Committee (FOMC).
These had avoided any serious divergence from already known facts about economic policy, and despite concerns anti-inflation measures could lead to a recession, no mention of the word "recession" appeared in the minutes.
Even legacy markets remained comparatively cool, with analyst Dylan LeClair describing the situation as "eerily calm" based on volatility data.
Cointelegraph contributor Michaël van de Poppe, who on May 25 had predicted a move towards $32,800 for BTC/USD, reiterated that a breakout from its current trading zone was "coming relatively soon."
For the meantime, however, on-chain signals meant that there was likely no impetus for significant price changes, according to fellow trader and analyst, Rekt Capital.
Analyzing on-chain volumes, it became clear that neither buyers nor sellers were prepared to make a bold statement at current levels.
"Previous periods of high sell-side BTC volume preceded periods where buyer volume started trickling in the following weeks. But now, we're seeing that a) seller volume is declining over time. And b) no $BTC buyer volume has come in following the high seller volume," he explained to Twitter followers on the day.
BTC/USD 1-week annotated chart. Source: Rekt Capital/ Twitter
As Cointelegraph reported, NVT Golden Cross, a long-term metric designed to catch price tops and bottoms using volume, flashed red this week as it appeared that on-chain transactions were not significant enough to support even $30,000 levels.
Dogecoin targets new yearly lows in altcoin rout
Altcoins presented a mixed bag on the day, with Ether (ETH) noticeably among the weakest of the major cap tokens.
With the exception of the May 12 wick, ETH/USD traded at its lowest in ten months on May 26, hitting $1,815 on Bitstamp.
"The question will be whether we can bounce from here and break the $1,940 level," Van de Poppe said.
If that happens, I'm assuming we'll continue $2,050. If it doesn't, then the markets are looking at.
ETH/USD 1-day candle chart (Binance). Source: TradingView
Solana's (SOL) daily losses meanwhile approached 10%, while Dogecoin (DOGE) was at it lowest levels since April 2021.
DOGE/USD 1-week candle chart (Binance). Source: TradingView
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.