Bitcoin escaped the long weekend without a supremely volatile event as price maintained a relatively narrow price range despite the liquidity
conditions. Holidays and unusual liquidity conditions have contributed
to extreme volatility in the past and, given the recent struggles within
the space, it could be argued Bitcoin bulls dodged a bullet with price
trading roughly in line with where it entered the weekend. Going
forward, however, Bitcoin may need to regain its shine before it can
look to recapture lost ground as retail traders and the rampant
speculation they bring about seems to have moved elsewhere.To get more
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To that end, AMC Entertainment (AMC) looks to be the recipient of said
interest and can be viewed as the markets speculative favorite for the
time being as the stock endures considerable volatility and rockets
higher. Despite few positive fundamental developments to drive such a
move, the publicity and coverage that the stock is getting may capture
the attention of some speculators that would have otherwise entered the
cryptocurrency market.
While it is difficult to gauge the overlap of traders and the pool of
capital is likely rather smaller in the bigger picture, it could work to
keep Bitcoin out of the limelight at a time when price remains
vulnerable.
As it stands, Bitcoin trades between two major technical levels with
resistance near $43,000 and support at $30,000. While a successful
bounce off the $30,000 mark in mid-May may have been encouraging in the
grander scheme of things, Bitcoin will have to avoid deeper declines to
curtail the continuation of lower-lows and lower-highs – a trend that
began in mid-April.
Prior support will likely act as resistance going forward, meaning
bulls will have to negotiate a plethora of barriers if they are to
recapture lost ground. Beyond initial resistance at $43,000, secondary
resistance likely rests at $46,750.
Given the developing series of lower-lows and lower-highs, it is
difficult to make a convincing bullish argument at this stage and
Bitcoin may need to regain its luster before resistance can be taken out
– a task that will become more difficult should meme stocks continue to
steal the spotlight. That said, Bitcoin remains well beneath recent
levels and lacks significant support until $30,000. A break beneath
$30,000 would mark another significant downgrade in the technical
outlook and would open the door to deeper losses.
