The cryptocurrency market approached the exit point from the consolidation

The cryptocurrency market is preparing for the end of a consolidation phase in which either bulls or bears will have to accept a painful defeat.

Fundstrat analysts point to"inverted head and shoulders" on the Bitcoin chart since May 19, although this is more consistent with the definition of a triangle. The differences are due to different data providers. After double testing on May 30-31 of the lower border of the TA figure, an upward approach to the already upper border is formed, but this happens with great difficulty. Given the market weakness on Tuesday, the long-awaited"meeting" could happen nowin the $38,000 zone – 38,500 tomorrow or the day after tomorrow, slightly exceeding the peak established at night on June 1. And after that it will go down, down to $30 000.

Yesterday's news from the Reserve Bank of India aboutthe absence of a ban on bitcoin and cryptocurrency trading had a short-term positive effect. Most players are still under the influence of regulatory pressure on Chinese miners and American companies serving the interests of investors.

On a regular basis in news agency feedsThere are similar critical statements from financial officials in different countries regarding the speculative nature of Bitcoin and its “unsuitability”. as an investment object. Today the market is “digesting” FT article on the slim prospects of SEC approval of a digital gold exchange-traded fund, based on recent comments from the agency's chief Gary Gensler. 

According to a recent Glassnode report, short-termtraders continue to drain coins at a loss, allowing long-term hodlers to accumulate them. This is a strong signal for a subsequent market recovery. In the short term, however, investor sentiment may continue to drive negative news headlines. Therefore, for now, it is safer to assess the short-term prospects with caution, which is confirmed by the price action.

For altcoins, the situation looks more interesting, but, given the strengthening of the correlation with BTC, all this may take place for a short time. We are waiting for the denouement. It will come soon.

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