BTC Bearish for June? Bitcoin has had been chopping / consolidating in a large range between 71k and 58k over the last several weeks.
One thing that has stood out to me , is the failure to break the very first initial high set closer to $73k. It seems like BTC is continually making some lower highs as it fails to break into the ATH territory.
To me, it may be a signal that the market is lacking sufficient liquidity to push the price higher, as we don't have enough buyers willing to purchase the Bitcoin near the highs.
Another sign is the new ETH ETF coming to fruition, which may resemble the same type of price action when the Bitcoin ETF was approved. Where we saw an initial dump (liquidity grab) before rocketing up to $70k.
You must understand that we have not had a significant enough pullback to larger support ranges since. As a result, the market has left many gaps and single prints (large candles with big moves) that have yet to be confirmed as support zones. I have marked these zones as the red rectangles on the SBIT chart to highlight where the market has not confirmed the move.
We also have the 21 ema starting to curl as price begins to try and break above the zone. This moving average , once broken and confirmed as support can provide confluence for a change in directional trend.
For these reasons, I have decided to take a swing trade on SBIT which is a 2x leverage ETF as we are at the lows of the total historic range, and a double bottom break above $35.
I will be cautious with equities and cryptos this summer as we may see a drop in liquidity as people take summer time off, and perhaps take profits on the move from the last half of the year.
Only time will tell!
Good luck
