2023-05-20 12:36:56 ET
The cryptocurrency market remained with less activity during the weekend, with slight price movements. Nonetheless, Crypto Rover, a renowned crypto analyst & trader, forecasts an impeding breakout for Bitcoin .
Imminent Bitcoin breakout?
The upside speculations come from the wedge setup on Bitcoin’s three-day chart. The wedge formation comprises converging support and resistance zones. The prices institute a new trend whenever it moves beyond the support or resistance while breaking the pattern. Nonetheless, traders should beware that this possible breakout could only present near-term relief – not continued rallies.
While the analysis of possible breakout remains attractive, Bitcoin remains susceptible to price dips, with crypto sellers targeting the $25K vicinity. The broad cryptocurrency market maintains uncertainty, with memecoin fans showing the most activity.
Bitcoin exchange supply at record lows
Contrary to Rover’s Bitcoin price forecast, Invezz reported a different bias among cryptocurrency investors. The latest trends show market participants have been purchasing and withdrawing their tokens from exchanges – at a somewhat alarming rate.
Santiment’s chart indicated that Bitcoin’s exchange supply hovered at 5.7%, reflecting lows never witnessed since December 2017 – when the bellwether crypto hit the $20K milestone. Ethereum had a similar case, with its circulating supply of 10.1% reflecting lows never touched since ETH’s launch in 2015.
Ethereum’s case could have stemmed from its holders preferring to stake their tokens rather than storing them on crypto exchanges. Meanwhile, everything is possible in the crypto space.
The leading crypto might climb beyond $27K should the predicted breakout appear. Nevertheless, plunges beneath the closest support of $26.3K would welcome sharp declines, potentially hitting the bearish target at $25K. While publishing this content, BTC traded at $26,928, gaining 0.39% within the past day.
Moreover, Bitcoin surged 0.48% in the last week. Crypto enthusiasts should watch out for any news that might catalyze price actions in the coming sessions. Bitcoin technicals indicate a sell position. BTC’s near-term outlook shows the downward road has fewer obstacles than the upside.
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