Positional battles for the $ 40 thousand level began in the bitcoin market.

On Tuesday, positional battles began on the Bitcoin market for possession of the psychological height of $40 thousand. after updating earlier highs over the past three weeks.

Jump of almost 19% on Sunday-Mondayforced us to cautiously assess the possibility of continued growth, even despite the increased appetite of MicroStrategy, which, on the wave of success in placing bonds for $500 million, announced an additional issue of shares in the amount of $1 billion, the proceeds of which will be used to purchase BTC. According to CEO Mile Saylor, the Fed has become addicted to the "printing press"therefore, further adoption of cryptocurrencies by institutions will inevitably continue.

His words are confirmed by survey data from Intertrust, according to which global hedge funds plan to significantly increase the share of digital assets, up to 7.2% of their NAV. But we were talking about 2026. 

Standby mode

Now many can take expectantposition. Goldman Sachs advised clients not to rush to diversify their investment portfolios using crypto assets. Weekly data from CoinShares reflected an outflow of funds from crypto funds for the second week in a row in the amount of $ 21 million. Everyone is waiting for a decrease in regulatory pressure and removal of current uncertainty.

For this reason, especially at current levels,buying by major players may weaken, extending the consolidation period through June and most of July. In any case, the technical picture does not exclude this. The triangle has received wider frames and so far only three waves out of five can be traced in it. Subsequent ones will lead to a decrease in volatility and a narrowing of the range. If the hypothesis is correct, then we should expect a smooth decline to $37,000 and then to $34,000 – $35,000.

For altcoins, consolidation scenario and notdisputed. Even in Polkadot, which immediately rose in price by 17% the day before amid news of receiving a listing on Coinbase Pro. The rally in Bitcoin, which saw its dominance index rise to 43.5%, was sparked by Musk's new tweets regarding the return of electric vehicle purchases using BTC. "Conscience" will stop tormenting him when the share of green mining reaches 50% (Cambridge University previously estimated it at 30%). Hackers from Anonymous may no longer visit Musk.

The intrigue of the “printing press” Fed

The US Federal Reserve meeting is ahead.What will Central Bank Governor Jerome Powell say if he ignores the recent surge in consumer prices? Or he will finally declare the need to discuss the timing and pace of winding down the work of the “printing press”. This worries many in the traditional financial market and some, like billionaire Paul Tudor Jones, are ready to invest up to 5% of their capital in Bitcoin as a hedge. The meeting is scheduled for Wednesday at 21:00 Moscow time, half an hour later Powell’s press conference will begin.

text: Chen Limin, CFO and head of trading operations at ICB Fund, photo: Shutterstock