Bitcoin tests the support, ATH Market Cap for USDT and Tether accumulating BTC

By MikeZillo | Trading with Mike Zillo | 17 May 2023

What Market Phase are we entering into has been the introductory question for our last appointments. Are we going to listen to the Bulls or the Bears? Are we going to see a Bull Market or a Bear Market?

Welcome to Surfing the Market, we are already at our 38th appointment and I hope that with these easy tech analysis we have helped you in some forms, even just to evaluate different market perspectives.

Let’s start from our usual weekly perspective

Source: Tradingview - Weekly Chart

Bitcoin lost again the 30.000$ level as some potential “Take Profit got triggered” and we saw again the 26.000$ level touched.
An interesting aspect is that the stablecoins volume is increasing with USDT touching a new capitalization historical maximum with more than 82 billion of dollars

Source: Tradingview

Another great news is that the Tether foundations bought more than 52000 Bitcoin thanks to the profits of the company during the first trimester of 2023.

What do I expect from a daily perspective?

Source: Tradingview - Daily Chart

The local minimum has been broken and that can potentially represent a weakness signal. Anyway, the sentiment for the market is still good and different people (and institutional investors) are starting back to invest and join the crypto-space. We are not in a FOMO moment but I think that the market can still be seen as bullish.

Source: Tradingview - Strength dollar index

DXY is still close to the psychological threshold of the 100 points, showing again some weakness of the US dollar. As the last week we also saw the increase of the interest rates, at the moment there are no signals of a potential recovery for the USD.

The price is now below the 50MA even below the red line. This level has already proven to be a key level, where the price was fluctuating in the second half of March.

Source: Tradingview - Daily Chart

The price is inside the Clouds, meaning that some uncertainty is in front of us now. Furthermore, we have an inversion of the Cloud happening at the beginning of June. The combination of this signals from the ichimoku Clouds may mean that we are in front of a wide statistical uncertainty and that an extra attention has to be paid.

And now, what from a Volume perspective?

Source: Tradingview - Daily Chart

Volumes are still in a “quiet area” but they are still consistent meaning that the market is not in a zombie mode and that many trades are continuously happening. This leads to a lower impact of short-term manipulation, leading big investors to test and stress-test the supports and resistances where real liquidity is condensed.

What to observe particularly?

I expect some more uncertainty in the price and I would not be surprised if the price will get back quick to the red level. Anyway, if the support is going to be broken, the support after can become 24000$.
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None of what I write can represent a financial advice in any form. So Do your own research before taking any kind of action.

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MikeZillo Verified Member

Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here Telegram: @mikezillo

Trading with Mike Zillo
Trading with Mike Zillo

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