Bitcoin on May 23, 2022 – Just a day or two to go?

The hammer and the anvil – Bitcoin (BTC) continues to trade in the $29,000-$31,000 area. Traders and analysts are now trying to determine the conditions for a breakout.

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Fireworks for Bitcoin: Timing and Likely Direction

The price of bitcoin climbs above $30,660 today, May 23, 2022, before dropping $30,000. It drops to around $29,000 before bouncing back. Bitcoin is trading at $29,362 at the time of writing this article. It is currently recording a daily loss of 1.88%.

Analyst Marcel Pechman shared on the Cointelegraph media, a graph showing a bitcoin forming a symmetrical triangle. In particular, he pointed to the existence of a narrow range of $28,900 to $30,900 in which bitcoin is trading.

12:00 bitcoin price on Kraken – Source: TradingView/Cointelegraph

The latter could, according to Marcel Pechman, continue to follow this configuration for another two weeks, before see more decisive price movement. Bitcoin might as well break out of this range with a bullish impulse as well as a bearish one.

The analyst indicates that investors seem to be betting on a decline, referring to data from the bitcoin derivatives markets. Still, he says the improving macro environment globally could surprise the bears.

However, the macro environment does not seem to be the only factor playing in favor of the bulls. Trader Rekt Capital noted the existence of a bullish hammer regarding bitcoin’s previous weekly candle.

Bullish reversal in sight for bitcoin (BTC)?
Publication of Rekt Capital – Source: Twitter

Will this bullish reversal take place by the end of this week or will we actually have to wait two weeks before we see a marked trend for bitcoin?

Regarding other bull-friendly exogenous factors, trader and investor Johan Miles commented the correction of the dollar (DXY), which is gradually moving away from its 20-year high. He expects “a drop, unless the 104 can be recovered”. In theory, this drop in the dollar should benefit risky assets like bitcoin.

Dollar correction in favor of bitcoin (BTC)
Posted by Johan Miles – Source: Twitter

For analyst Kevin Svenson, it would rather be the stock market that “will decide the fate of Bitcoin”. The cryptocurrency would be at “ 1-2 days to give us some fireworks “.

Bitcoin (BTC) correlated to the stock market
Posted by Kevin Svenson – Source: Twitter

While this outlook looks quite encouraging for bitcoin, the forecast based on the January 2022 death cross raises concerns about the actual floor price of the current decline. An exit from the bottom of the trading range, would then make a drop to $22,700 for bitcoin more likely.

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