Bullish investors in bitcoin aren’t all jazzed about the long U.S. Memorial Day holiday weekend ahead.
The sun, the fresh air, barbecues, the first major summer break, as more doses of COVID vaccines have hit the arms of Americans and those in other parts of the world. That setup appears to be taking a back seat to growing agita about bearishness that could further crystallize in the coming days for bitcoin
and the broader crypto complex, including dogecoin
on the Ethereum blockchain.
“There’s a bloody crypto weekend coming,” Yves Lamoureux, president of macroeconomic research firm Lamoureux & Co., told MarketWatch on Friday.
U.S. markets are closed Monday for Memorial Day but crypto markets are open 24 hours.
Lamoureux isn’t the only one harboring Memorial Day anxieties. Billionaire digital-asset entrepreneur Barry Silbert tweeted that he hopes that bitcoin takes the weekend off.
A report on CoinTelegraph speculated that bitcoin could still skid to $20,000 or below. The asset was most recently changing hands at $36,199, down over 7%, on CoinDesk. Bitcoin is up 24% year to date but off 44% from its mid-April peak at $64,829.14.
Technical analyst at Katie Stockton, who runs Fairlead Strategies, said that bitcoin has benefited from short-term oversold conditions over the past couple of weeks, stabilizing near $34K support.
However, she said it is struggling with its 200-day moving average. Technical analysts use moving averages as gauges of long term and short-term momentum in an asset.
“My short-term gauges are pointing higher, but we have no convincing intermediate-term ‘buy’ signals,” Stockton said.
With this in mind the technical analyst said that support near $34,000 may be in jeopardy after more of a bounce, “so we have our eyes” on $27,000 “as a possible entry.”
Dogecoin prices, the popular meme crypto engineered in 2013 as a lighthearted riff off the proliferation of bitcoin alternatives, is changing hands at 31.6 cents, down over 6%. The altcoin is down nearly 60% from its all-time peak earlier in May. That said, the digital-asset is up 6,500% in the year to date.
The No. 2 crypto by market value, Ether, was down 9% and changing hands at $2,528, up nearly 240% thus far in 2021.
However volatile, the gains in crypto have mostly outstripped those for conventional assets (with the exception of meme stocks like AMC Entertainment Holdings
and GameStop Corp.
The Dow Jones Industrial
for example, is up 0.3% on Friday and up about 13% in the year’s first six months or so. The S&P 500 index
was trading 0.3% higher on the session and looking at a year-to-date rise of more than 12%, while…