Sentiment Poll$BTC pushes up or breaks down from the current multi week consolidation?
— Josh Rager 📈 (@Josh_Rager) May 26, 2019
Every four years, the Bitcoin blockchain network experiences a halving of block rewards which declines the rate in which new BTC is produced by miners. An impactful fundamental factor like the block reward halving is likely behind other factors such as the rise institutional and retail interest because of the sheer momentum of the crypto market in recent weeks.
Cory Mitchell, a swing trader says:
“The degree of separation between the short- and long-term moving averages can be used as an indicator of trend strength. If there’s a wide separation, then the prevailing trend is strong. Narrow separation, or lines that are crisscrossings, indicates a weakening trend or a period of consolidation.”
Regarding the persistence of the bull market, Peter Brandt, a widely recognized trader, said:
“This is the FOMO phase of the advance. Once the majority of sold-out crypto bulls capitulate and chase this rally a more sizable correction will likely occur, stopping out the same bulls, who are chasing this advance.”
However, there are some skeptics who are still concerned. Jason Calacanis, a prominent Silicon Valley investor said:
“My position remains the same. Bitcoin will likely be replaced by new technology & it’s manipulated It’s possible it’s built to last, but not probable, so keep your position to an amount you’re willing to loose For most, that’s 1-5% of net worth It will likely go to 0-$500.”
However, as of now, the crypto market has shown no signs of an imminent correction and based on the recent momentum of the market, it is entirely possible that the market continues to climb without a substantial pullback as many expected.