empty
22.05.2023 11:07 AM
Bitcoin consolidation continues: should we expect the situation to change?

Over the past two weeks, the cryptocurrency market has started to resemble a deserted desert. The price of Bitcoin continues its persistent consolidation near the $27k level without any attempts to break out of the range of $26.6k–$27.5k. The situation has not changed even after the speeches of Federal Reserve System members on Friday.

This image is no longer relevant

The asset continues its flat movement with bulls and bears in full parity. As a result, we have not seen strong price movements or spikes in volatility. On-chain activity and trading volumes in the Bitcoin market also continue to decline to local lows.

The Fed statements

The speeches of the major volatility providers in the financial markets—the Fed officials—could not affect the situation. Although Fed Chair Jerome Powell's speech saw an increase in activity, it did not significantly impact the price movement.

This image is no longer relevant

Moreover, a large number of traders closed their limit orders due to the high level of uncertainty regarding the movement of BTC price. As a result, the cryptocurrency price remained fluctuating in the range of $26.6k–$27.5k. Meanwhile, Powell made important statements that can be considered positive.

This image is no longer relevant

The official noted that the key goal of the Fed is to reduce inflation to 2%, which stood at 4.9% as of the end of May. Powell also acknowledged that the interest rate will not be raised due to high credit stress, which has caused a local crisis in regional banks in the United States.

Bullish sentiment in the BTC market

Despite minimal price movement of the leading cryptocurrency, market sentiment can be assessed as positive. Several important on-chain metrics indicate this. According to Santiment, the number of BTC held by "shrimp" wallets has reached an all-time high of 1.32 million coins.

This image is no longer relevant

Glassnode also reports that the volume of BTC coins held by long-term investors has reached a peak of 14.46 million units. These are positive signals indicating fundamental trust in the asset. At the same time, significant outflows of BTC coins from crypto exchanges are observed.

This image is no longer relevant

Santiment reports that approximately 5.7% of the total BTC supply is held on trading platforms. Analysts suggest that investors withdraw assets for offline storage immediately after purchasing, which also indicates long-term plans.

This image is no longer relevant

However, this has a negative impact on the short-term prospects of BTC, as volatility levels and trading volumes have reached lows seen in recent years. It is also reported that BTC miner inventories have decreased by 2,000 BTC over the past few days.

BTC/USD Analysis

All these factors indicate the long-term value of Bitcoin but show weakness in buyers' short-term perspective. The asset continues to consolidate around $26.6k–$27.5k, and there is no reason to believe that the situation will change significantly in the near future.

This image is no longer relevant

Technical metrics are also moving within narrow ranges, indicating a weak impulse and its likely realization only within the range of fluctuations. However, when the consolidation movement is completed, we can expect BTC to break out of the range of $26.6k–$27.5k.

Conclusion

As of May 22, Bitcoin looks bearish, and therefore, the chances of a further decline in the asset are higher. The key levels for bears are $26.6k, where an important support level is located, and two strong accumulation blocks around $26.1k and $26.2k.

This image is no longer relevant

If these thresholds are breached, the asset will continue its downward movement towards the $25k area. However, if the asset resumes its upward movement and consolidates above $28.5k, we can expect a resumption of the upward trend. But the chances of a bullish scenario are currently extremely low.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin spikes from $96 600 to $104 500 in 24 hours

Bitcoin has surged to $104,500, after trading at $96,600 just yesterday morning. This confident move above the $100,000 mark clearly signals a return of strong bullish momentum in the cryptocurrency

Jakub Novak 14:49 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 9

Bitcoin has climbed above $100,000, while Ethereum is trying to consolidate above $2,000. After yesterday's sharp rally, which continued during today's Asian session, Bitcoin is now trading at $103,000, having

Miroslaw Bawulski 09:46 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Ethereum Cryptocurrency, Friday May 09, 2025.

If we look at the 4-hour chart of the Ethereum cryptocurrency, it appears that the price movement is moving above the WMA (30 Shift 2) which also has a slope

Arief Makmur 06:27 2025-05-09 UTC+2

Technical Analysis of Intraday Price Movement Bitcoin Cryptocurrency, Friday May 09, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, the Stochastic Oscillator indicator can be seen to be in Overbought conditions and is now preparing to Cross SELL and break below

Arief Makmur 06:27 2025-05-09 UTC+2

Bitcoin: Who's Driving the Price Up — Powell, the U.S. Treasury, or Short Squeezes?

While stock indices remain stagnant, gold consolidates near its highs, and Bitcoin is once again capturing attention. The crypto market's flagship has approached the psychologically important $100,000 level

Ekaterina Kiseleva 00:28 2025-05-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 8

Bitcoin reached just below $100,000, while Ethereum hit $1,900. Such a major growth in the cryptocurrency market once again confirms its bullish outlook, which has been discussed quite

Miroslaw Bawulski 09:22 2025-05-08 UTC+2

Bitcoin on the Brink: Breakout or Reversal?

Bitcoin's price is hovering near a psychologically significant threshold, with market participants bracing for another upward surge or a sudden reversal that could erase short-term bullish expectations. More chart

Ekaterina Kiseleva 01:16 2025-05-08 UTC+2

Crypto market opens with buoyant growth

US stock index futures surged sharply at the opening of today's trading session on news that representatives from the US and China have resumed consultations on trade matters. Media reports

Jurij Tolin 14:14 2025-05-07 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 7

Bitcoin and Ethereum Show Further Growth Amid Positive Crypto Legislation News Bitcoin is currently trading at $96,700, having rebounded from a low of $93,400, while Ethereum has recovered

Miroslaw Bawulski 10:32 2025-05-07 UTC+2

Bitcoin Gathers Strength: The Market Prepares for the Next Wave

Bitcoin is trading in the $93,000–$94,000 range, about 0.5% below its recent local high of $97,900, recorded on May 2. Volatility has decreased, and the market seems

Ekaterina Kiseleva 01:23 2025-05-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.