Bitcoin (BTC) is struggling to sustain any price level during the current pullback, indicating a lack of demand at higher levels. Does this mean that the bull trend is over and the institutional investors are abandoning the crypto markets?
No! It is the other way around. Glassnode’s weekly newsletter pointed out that the Grayscale Bitcoin Trust (GBTC) premium is rising, suggesting that institutional investors are accumulating at lower levels.
GBTC is not alone, another popular vehicle for institutional investors, the Canadian Purpose Bitcoin exchange-traded fund has also witnessed strong capital inflows. According to analysts at Glassnode, this shows “early signs of renewed institutional interest.”
Another metric that may be signaling a possible bottom in Bitcoin is its dominance chart, which looks similar to the early part of 2017. If Bitcoin’s dominance follows a similar trajectory to 2017, it will indicate that Bitcoin is still some distance away from its peak and altcoin season still has room to run.
Now that the monthly options and futures expiry has passed, investors are likely wondering if Bitcoin could start a sharp recovery next week and which altcoins will rally if that happens.
Let’s look at 5 cryptocurrencies that could start trending moves this week.
Bitcoin’s brief breakout could not clear the hurdle at the 200-day simple moving average ($41,014) on May 26 and 27, indicating the bears are defending this level aggressively. The downsloping 20-day exponential moving average ($41,327) and the relative strength index (RSI) near the oversold zone suggest the bears are in control.
If the BTC/USDT pair breaks the $33,000 support, the next stop could be the $30,000 to $28,000 support zone. If this zone also gives way, the pair may witness panic selling and a drop to $20,000 is possible.
The longer the price stays below the 200-day SMA, the more difficult it…