The Bitcoin (BTC) chart has formed a symmetrical triangle, which currently holds a tight range from $28,900 to $30,900. This pattern has been holding for nearly two weeks and could potentially extend for another two weeks before price makes a more decisive movement.
For those unfamiliar with technical analysis, a symmetrical triangle can be either bullish or bearish. In that sense, the price converges in a series of lower peaks and higher lows. The decisive moment is the support or resistance breakthrough when the market finally decides on a new trend. Thus, the price could break out in either direction.
According to Bitcoin derivatives data, investors are pricing higher odds of a downturn, but recent improvements in global economic perspective might take the bears by surprise.
The macro scenario has improved and BTC miners are staying busy
According to Cointelegraph, macroeconomic conditions driven by the United States helped drive crypto markets higher on May 23. Before the market opened, United States President Joe Biden announced plans to cut trade tariffs with China, boosting investors’ morale.
According to the latest estimates, Bitcoin’s network difficulty will reduce by 3.3% at its next automated readjustment this week. The change will be the largest downward shift since July 2021 and it’s clear that Bitcoin’s downtrend has challenged miners’ profitability.
Still, miners are not showing signs of capitulation even as their wallets’ movements to exchanges hit a 30-day low on May 23, according to on-chain analytics platform Glassnode.
While miners’ sentiment and flows are important, traders should also track how whales and market markers are positioned in the futures and options markets.
Bitcoin derivatives metrics are neutral-to-bearish
Retail traders usually avoid quarterly futures due to their fixed settlement date and price difference from spot markets. However, the contracts’ biggest advantage is the…
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