Title: BTC price breakout due ‘relatively soon’ as Bitcoin volumes spook traders
May 27, 2022 07:40AM ET
The price of Bitcoin (BTC) disappointed bulls ahead of the Wall Street open on May 26, when BTC/USD fell below $29,000.
Data from Cointelegraph Markets Pro and TradingView showed an unremarkable day for Bitcoin with a loss of $800 in a single hourly candle a few hours before the start of trading.
The largest cryptocurrency avoided volatility following the release of the Federal Open Market Committee (FOMC) minutes.
They avoided any serious departure from the already known facts about economic policy and despite concerns that anti-inflationary measures could lead to a recession, the word "recession" was not heard in the minutes.
Even the legacy markets remained relatively calm, with analyst Dylan LeClair describing the situation as "eerily calm" based on volatility data.
Cointelegraph contributor Michal van de Poppe, who predicted a move towards $32,800 for BTC/USD on May 25, reiterated that a breakout from the current trading range is inevitable "relatively soon".
In the meantime, however, signals on the chain meant that there was likely no incentive for significant price changes, according to the trader and friend of analyst Rekt Capital.
Analyzing the volumes on the chain, it became clear that neither buyers nor sellers were willing to make a bold statement at current levels.
"Previous periods of high BTC sales volume were preceded by periods where buyer volume began to decline in the following weeks." However, we now see that a) sales volume is declining over time. "And b) the high volume of sellers was not followed by any volume of $BTC buyers," he told his Twitter followers that day.
As Cointelegraph reported, the NVT gold cross, a long-term metric designed to identify price highs and lows based on volume, was flashing red this week as it became clear that transactions on the chain were not significant enough to support even the $30,000 threshold