Uncovering the Reason Behind Bitcoins Resistance at $28K

Uncovering the Reason Behind Bitcoins Resistance at $28K

Learn why Bitcoin is stuck near $27,000 and how the macroeconomic scenario has become critical for an eventual breakout, plus analysis on Biden’s comments about wealthy crypto traders cheating on their taxes in this episode of Cointelegraph Market Insights.

On May 23’s episode of , analyst and writer Marcel Pechman discusses why Bitcoin (BTC) is stuck near $27,000 and how the macroeconomic scenario has evolved more critical than ever for an eventual breakout. Plus, the show dissects what United States President Joe Biden has been saying about cryptocurrency traders being wealthy tax cheaters.

The 1st news post shows that the most whole lot of price movements tend to occur after periods of low volatility, as traders tend to get overconfident and add leverage. That establish a perfect storm for a decisive breakout, so, in the end, stop-loss orders and liquidations further boost the price swing.

Pechman does not believe the United States Federal Reserve decision on June 14 will be the trigger everyone expects because it’s relatively priced in that the present 5 percent price will be maintained. In his 20-year trading experience, Pechman reveals those events tend to come out of nowhere.

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The show dissects what Biden has been saying about wealthy cryptocurrency traders cheating on their taxes. The alleged protections for cryptocurrency traders refer to tax-loss harvesting — a strategy investors use to lower their overall tax liabilities.

Reports by Pechman, tax-loss harvesting is nothing new and is relatively common in the stock, mutual fund, and commodities markets. There are no grounds for Biden’s baseless differentiation of investment classes, and Pechman does not believe the United States president is in a bargaining position at this time, with less than 10 days to go before a potential debt default.

The show’s third and final post covers the speculation of an imminent Bitcoin (BTC) breakout toward $29,000. The past few sideways price movement is eerily similar to early April when BTC’s 12-hour chart ranged betwixt $27,800 and $28,700 for 11 days.

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Nonetheless, Pechman outlines little similarity betwixt the early April positive  tendency breakout and the present status of the Bitcoin (BTC) futures premium and options danger metric. The bottom line? This time is different, which doesn’t mean bulls can’t get ahead; it’s just less likely reports by those metrics.

Do not miss out! The show is available exclusively on the Cointelegraph Markets & Research YouTube channel.


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