Bitcoin (BTC) fell in line with US stocks on May 31 as Wall Street’s comeback began with a whimper.
Stocks drive BTC price south
Data from TNZT Markets Pro and TradingView showed BTC/USD recovering to near $31,000 at the start of trading after markets returned from a holiday.
This move mirrored that of equity indices, with the S&P 500 losing 1.1% at the open and the Nasdaq Composite Index trading down 1%.
I still think the rise of #BTC the price is wrong. It is clear that we do not know how high it will go. But I have no doubt that he is pumped…
We note a very negative delta on the daily time slot as well as imbalances in favor of sellers in the zone of aggressive sellers… pic.twitter.com/kcvffm9IFj
— M_Ernest_₿ (@M_Ernest_) May 31, 2022
“It is not unlikely that stocks will give back some of their gains from the past week,” analyst Jan Wuesterfeld wrote in the latest edition of his Bitcoin Market Intelligence newsletter for the day.
“In my mind, if that happens, Bitcoin will likely also give away some of the gains made over the weekend and Monday (reconnect in this case).”
Others focused on irrelevant long-term price signals. Kevin Svenson, a contributing analyst at on-chain analytics platform CryptoQuant, pointed to Bitcoin’s 20-month exponential moving average (EMA) as a source of possible future conflict.
“In previous cycles, Bitcoin spent 6 -> 13 months below 20m/EMA after falling below. We have just experienced our first month below 20m/EMA right now,” he said. Explain.
“If human emotion repeats itself, then we will be below 20m/EMA until (at least) November 2022…and 13m is May 2023.”
“No trend” of distribution by minors
A potential silver lining for Bitcoin came in the form of miner behavior.
Related: “Mega Bullish Signal” or “Real Breakdown?” 5 things to know about Bitcoin this week
Amid warnings that the cost price of miners is now above the market, create With the threat of capitulation similar to the bear market low of 2018, the data suggested panic had yet to set in.
“Bitcoin miners are considered smart money and speculators in BTC markets,” wrote fellow CryptoQuant contributor and analyst Venturefounder in a newsletter of the day.
“As the price of BTC recovers, Bitcoin miners have shown no net distribution trend, in fact, the net accumulation trend that began in July 2021 continues.”
An attached chart showed that miners increased their BTC reserves in the second half of May, in particular.
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