- Bitcoin (BTC) and Ethereum (ETH) have been trading in a tight range above the crucial support levels after a strong bounceback on Monday, May 15.
- Analysts are keeping an eye on the trading volumes to determine the sentiment for any kind of directional move.
- Jeff Dorman believes that prices of most digital assets are stuck in a wind tunnel.
Bitcoin and Ethereum Trading Volumes Key Metric to Watch
Analysts are focusing on trading volumes for Bitcoin and other crypto assets to get an idea about the sentiment behind any kind of directional move. As of now, Bitcoin is trading at a price of $27,241 with a market cap of $527 billion while Ethereum continues to trade at $1,822 with a market cap of $219 billion. The bid/ask spreads have become important especially after two major market makers – Jane Street and Jump Crypto – decided to exit the market. Jeff Dorman, chief investment officer at the digital-asset manager Arca, stated that prices of most digital assets are stuck in a wind tunnel.
US Government Debt Ceiling: What It Means?
The traditional financial markets remain silent as traders attempt to understand if US lawmakers would agree on a plan to avoid default by the federal government. Treasury’s borrowing has reached close to its limit so it will be crucial if US Congress agrees to increase the debt ceiling or not.
Where Is Bitcoin Heading Next?
After facing rejection at $30,000, Bitcoin has seen some retracement over last few days and is currently trading pretty close to 200-day moving average. Popular crypto analyst Michael van de Poppe said that as long as BTC holds above 200 MA and EMA, it could continue its journey towards $38k-$42k from here but faces selling pressure around $27200 recently.