Bitcoin is stabilizing after a wild May as traders gather in Miami. DOGE sees further gains.
The cryptocurrency market is still recovering from last month’s volatile correction. Bitcoin (BTC) was up about 4% over the past 24 hours as of press time and was holding support above $35,000. Technicals suggest limited upside towards $40,000 and $45,000 as resistance remains strong.
Bitcoin (BTC) trading around $37,800 as of 21:00 UTC (4 p.m. ET). Gaining 4.25% over the previous 24 hours.
Bitcoin’s 24-hour range: $35,805.21-$38,214.79 (CoinDesk 20)
Ether (ETH) trading around $2,756 as of 21:00 UTC (4 p.m. ET). Gaining 8.82% over the previous 24 hours.
Ether’s 24-hour range: $2,539.65-$2,802.82 (CoinDesk 20)
Traders were met with a mix of good and bad news heading into June. The bad: The U.S. Securities and Exchange Commission (SEC) chose last week to delay a decision on WisdonTree’s bitcoin ETF application. In late April, the SEC delayed a decision on VanEck’s bitcoin ETF application to at least June.
Delayed approval of a bitcoin ETF could leave traders searching elsewhere for signs of a directional pull. Bitcoin, ether and other larger cryptocurrencies have been stuck in relatively tighter ranges over the past few days, but some analysts remain hopeful that bullish sentiment will return.
Bitcoin goes to Miami
Some are looking to the Bitcoin 2021 in-person conference in Miami starting Thursday as a possible positive influence on price movement. This is similar to the so-called CoinDesk “Consensus Effect,” an unproven theory that crypto prices typically rally during or immediately after the conference.
Mati Greenspan, CEO of Quantum Economics, calls it the “Miami Effect.”
“The idea is that a gathering of several thousand people speed networking, sharing ideas and closing deals can be a boon for grassroots growth in the industry,” wrote Greenspan in a newsletter published on Wednesday.
Elsewhere, Dogecoin (DOGE) continues to rally and is up about 20% over the past 24 hours at the time of writing.
Dogecoin howls at the moon
The rally in DOGE has taken center stage ever since Tuesday’s blog post by Coinbase saying traders on its Pro platform can begin trading the cryptocurrency as early as Thursday.
Dogecoin was trading at 41 cents at the time of writing, representing a 32% gain in the last 24 hours.
“People are still going to be cautious long-term, but this debut will eventually have some ability to attract traditional investors and not just the Robinhood/Reddit army,” said Edward Moya, Senior Market Analyst at Oanda.
“We’ve had consistent net buyers on Dogecoin, which indicates the general bullishness around it as it gains popularity across all demographics,” said Voyager’s CEO Steve Ehrlich in an interview with CoinDesk.
However, some analysts see lack of fundamentals as a possible deterrent to DOGE’s rally. And technicals suggest limited further upside despite the short-term bounce.
Full story by CoinDesk’s Lyllah Ledesma here.
Volatile May leaves bitcoin rangebound
Over the past month, bitcoin suffered its third-worst monthly loss of about -35%, leaving analysts to wonder if sellers have fully capitulated.
Last month’s correction “performed slightly better than some of the most notable bear markets in history in 2012 and 2018, as you can see in the chart below,” wrote 21Shares, a Swiss based asset manager, in a newsletter published on Tuesday.
https://www.coindesk.com/market-wrap-bitcoin-repair-mode-miami-dogecoin