Over the last seven weeks, a negative technical formation has dragged down the overall crypto market capitalisation. Bitcoin’s 2% loss, as well as BNB’s 1.7% and XRP’s 2.5% declines, were the primary drivers of the most recent 1.3% correction between May 18 and May 25. The falling wedge formation initiated in April points to a possible breakout near $1 trillion in late July. For bulls, the bearish structure that took total capitalization to $1.11 trillion on May 25 means that an eventual breakout would require additional effort. Given the balanced demand in the futures markets, traders appear reluctant to place additional bets until there is more clarity on the US debt showdown. It is unclear if the crypto market will be able to break out of the falling wedge formation.
Bitcoin price has consolidated within a tight range as traders remain steady. While Bitcoin is typically a volatile asset, the weekly consolidation around a slight 3.4% price range has many analysts feeling BTC price is stuck. Others expect volatility to recover. While bitcoin’s lack of price action is due in part to longtime investors’ conviction and the influx of new liquidity into the market, BTC has still outperformed many assets in 2023. Realised…
