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While Wall Street flies in the background of calm between Washington and Beijing, Bitcoin, 12th May wins below $ 102,400. An unexpected decline that contrasts with the surrounding optimism and institutional dynamics of the last few weeks. Why didn’t BTC use the euphoria of markets? Several hours before the publication of the American ICC, investors are wondering: simple profits or signal in front of a deeper macroeconomic stress?
In short
- Bitcoin briefly fell below $ 102,400 12. May, despite the favorable macroeconomic climate.
- This correction comes when traditional markets respond positively to a business agreement between the United States and China.
- Analysts evoke technical disposal associated with profits and reduce the risk before ICC publication.
- Despite this decline, the fundamentals remain solid: Microstrategy bought 13,390 BTC and Bitcoin ETF record positive flows.
Technical correction powered by macroeconomic context
May 12 Bitcoin recorded a sudden decline and moved from an in -house peak to $ 105,819 to a lower $ 102,388, without a clearly lower macroeconomic catalyst. However, this decline comes in a globally favorable context.
The business negotiations between Washington and Beijing advanced in Geneva, which caused the enthusiasm of Wall Street. US President Donald Trump himself really appreciated the advances through his true social platform and spoke of a housing agreement.
When opening the markets, Dow Jones jumped by 1,000 points, but Bitcoin didn’t follow. Some traders believe that the market has already integrated the effects of Trump agreement with China because bitcoins could not maintain over $ 104,000 despite such a size.
In addition to this macroeconomic interpretation, they report market data on profits and risk reduction by some investors. This caution could be associated with the expectation of the ICC (consumer prices index) planned for 13 May. Technical and behavioral indicators support this hypothesis:
- The derivative markets have seen a clear increase in sales positions, accompanied by an increase in financing rates (financing), indicating a change in feeling;
- The volume of sales has advanced both on the spot market and on permanent term contracts when the BTC approached $ 106,000;
- The level of disposal of long positions has increased, suggesting that many traders have closed their positions before ICC or fear of more pronounced correction;
- Finally, the sales pressure is based mainly on the actors in profits whose behavior contributes to contemporary consolidation.
These signals confirm that the decrease in BTC is essentially technical and opportunistic, which is more than a reaction to a degraded basic factor.
The foundations of haussiers still on the spot
In addition to this technical correction, several elements testify to the basic bull pulse, which carries the dynamics of growing adoption. On the same day as this decline, Michael Saylor, CEO of Microstrategy, announced a new massive purchase of 13,390 BTC, reaching the company’s cash to 568,840 BTC.
At the same time, the KindlyMD event recorded a spectacular flight of 600 %. This increase follows the announcement of its merger with Nakamoto Holdings, an investment company specializing in bitcoins. It was founded by David Bailey, the current crypto advisor Donald Trump. If these notifications were not enough to immediate price support, they still strengthen the feeling that the institution will continue to stand up for a long time.
The data of the chain supplied by Glassnode confirms this diagnosis. According to analysts, the RSI indicator remains at an exceptionally high level of 100, which “shows a strong power in a new application”.
On the other hand, profits indicators increase. This configuration is typical of the transition period when the market consolidates its earnings before the new cycle. In addition, the positive flows at the Bitcoin point ETF have been recorded in the last seven days have been reflecting the persistent trust on the side of institutional investors, despite volatility.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.