Worries over capitulation see MicroStrategy give away key insights into what it would do should Bitcoin price strength deteriorate.
Bitcoin (BTC) saw classic “choppy” price action on May 4 with hours to go before fresh Federal Reserve cues.
Bulls pin hopes on history
Data from Crypto Markets Pro and Trading View followed BTC/USD as it bounced between support and resistance after hitting $37,600 on the evening of May 3.
A subsequent bounce back saw the pair clip $39,000 at the time of writing, providing relief to low-timeframe traders at 4.1% off the lows.
More broadly, however, Bitcoin stayed rangebound and beholden to macro triggers as markets braced for Fbrace for Fed-induced volatility.
The two-day meeting of the Federal Open Markets Committee (FOMC) and press conference was due to begin at 2:00 pm EST on May 4.
With little to comfort bulls, some turned to historical comparisons. The start of the Fed’s previous cycle of key interest-rate hikes in 2015 proved a turning point for BTC price strength, thus culminating in the December 2017 blow-off top.
“BTC is now testing a multi-week resistance,” popular trader and analyst Rekt Capital, meanwhile, concluded about the daily chart following the uptick above $39,000:
“Break this and the multi-week downtrend is over and $BTC will enjoy upside.”
MicroStrategy plans for BTC to “never get” to $21,000
Elsewhere, amid growing calls for a “capitulation” style event to put in a fresh macro bottom on BTC/USD, contingency plans were also becoming conspicuously more vocal.
( William Suberg, Cointelegraph, 2022 )