The cryptocurrency market expects new drivers to break out of the current equilibrium

The cryptocurrency market cannot yet determine its direction and needs new drivers to get out of the current equilibrium.

The passing of an iconic figure for the industry,John McAfee, who supposedly committed suicide in order not to end up in the arms of the American Themis, will serve as a reason to continue to reassess the existing disposition. After failing to settle below $30 000, a wave of short liquidation and buying from figures of the caliber of Ark Invest Cathie Wood, Anthony Pompliano and Michael Zonenstein followed to continuegrowth, which technical analysis hints at. At least some kind of recharge from positive news is required, but it is not there yet, which led to the suspension of the rise and the transition to range. 

On Wednesday, Bitcoin again had to experiencepressure, this time from the Bank for International Settlements. The current situation was perfect for the presentation of a report on national digital currencies. They don't need competition from projects like Facebook's Libra (Diem) or BTC. Central banks have decided – CBDC is the future, while cryptocurrencies – “a speculative asset, not money,” adding all those mantras about financial crimes that have already been uttered more than once.

The “old guard” also got involved: Professor Naseem Taleb and bubble specialist Jeremy Grantham. But the market calmly accepted this, which cannot but be included in the asset.

The focus is still on the Chinese direction.The head of Foundry USA promised that the migration of miners will not happen overnight and may be burdensome, so new sales of accumulated coins cannot be ruled out. But not now, at the moment the market is oversold and the companies seem to be waiting for more favorable conditions.

An external background can also help.The Fed is signaling the start of a discussion on the normalization of monetary policy, but they are trying to calm the market and they succeeded (at least until the next report on the labor market on July 2). Therefore, if the selling pressure does not return, new waves of closing short positions will follow by the end of the week, the magic of technical analysis will manifest itself.

Santiment notes long staycrypto market sentiment index in the FUD area, which usually leads to a rebound. The recovery scenario to $37,000 or more by July remains the main one. Altcoins are out of favor. The Bitcoin dominance index has strengthened.

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