Bitcoin in 42-day ‘boredom zone’ — traders debate next move
Bitcoin (BTC) has now spent 42 days in the “boredom zone” and cryptocurrency traders are divided on whether Bitcoin will consolidate for another surge or fall 20% to a critical support level.
“We have now spent 42 days in low volatility and boredom territory,” anonymous cryptocurrency trader CryptoCon declared in a May 30 post, suggesting that the lack of volatility in the Bitcoin price is a key sign of “market boredom.” He explained.
Bitcoin is currently trading at $67,680, just 6.7% higher than its price 42 days ago, according to data from CoinMarketCap.
Aside from two breaks outside support and resistance levels, reaching $58,253 and $71,443, Bitcoin mainly traded within a narrow range during the period.
Pseudonymous cryptocurrency trader Willy Woo believes Bitcoin’s increased consolidation is a positive sign that the price has not yet peaked, predicting in a May 29 post that there is only “more room to run before it peaks.”
Pseudonymous cryptocurrency trader Daan Crypto Trades believes Bitcoin is currently in a price discovery phase where “anything actually goes.”
“In price discovery, setting targets can be difficult because there are no levels to observe,” Daan Crypto Trades argued in a May 29 X post.
He claimed that if it breaks the current all-time high of $73,679, it could reach $102,073 before the end of the year.
However, cryptocurrency traders using various indicators are not anticipating what will happen next.
Timothy Peterson, founder of Cane Island Alternative Advisors, pointed out that the price of Bitcoin could fall to around $54,190 based on the price of Bitcoin to Metcalfe’s value. This is an indicator that the value of Bitcoin is proportional to the square of the number of Bitcoin users or participants. Bitcoin network.
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“This is the Bitcoin price for Metcalfe value. A ratio above 100% always predicts a downside of -20% or more. This week it hit 102%. There is a 2/3 chance of a -20% decline in six months,” Peterson explained.
“There is a high probability of that happening. “Bitcoin will fall into the low 50s sometime in the next 180 days,” he added.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
