Bitcoin (BTC) surged to new local highs overnight to June 3 after US stocks pared losses.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Wall Street is providing a short-term remedy
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining steadily, hitting $30,670 on Bitstamp before consolidating.
Sentiment among stocks was firmer during the June 2nd session, with the S&P 500 regaining most of the ground lost over the past month. The Nasdaq Composite Index rose 2.7%.
Analyzing the crypto market cap versus the Nasdaq, popular analyst TechDev noted what could be an incoming inflection point.
Potentially interesting. #BTC / $NDQ pic.twitter.com/i0k8oEyhw3
— TechDev (@TechDev_52) June 2, 2022
His colleague and analyst Pentoshi, meanwhile, issued a sobering outlook for the S&P 500 on weekly timeframes going forward.
My current working theory for #SPX and markets in general is this. I had spoken in the past of 3840 being a key point
I believe we just had our swing low and that next week will look like the red part drawn on the chart with a higher low than last week and therefore a risk for ST https://t.co/ o7uv2b40BF pic.twitter.com /TOOn6KP9Th
— Pentoshi (@Pentosh1) May 22, 2022
Bitcoin itself continued to face calls for a retracement that would eclipse the May lows of $23,800.
Still targeting between $22,000 and $24,000, Crypto Tony called for a break of a trendline currently near $32,500 to consider a long scalping.
“Bitcoin held the $30,000 level as long as it would be intact from the $29.3,000 region,” Cointelegraph contributor Michaël van de Poppe, meanwhile, added of his near-term strategy.
“Now flipping $30.3K would allow a continuation towards $31.8K.”
At the time of writing, BTC/USD is trading around $30,500.
Timmer: Bitcoin supply and demand need a ‘fresh take’
An on-chain analyst became the latest to take on the increasingly controversial stock-to-flow (S2F) BTC pricing model.
Related: This classic bitcoin metric is flashing for the first time since March 2020
After Stock-to-Flow failed to validate its $100,000 year-end forecast for 2021, Stock-to-Flow has been increasingly sidelined as its creator, PlanB, faces criticism.
Jurrien Timmer, head of global macro at on-chain analytics firm Glassnode, while acknowledging the model’s potential flaws, revisited it and offered an optimization that he said would serve to increase utility.
“It’s time to take a fresh look at Bitcoin’s supply-demand dynamics,” began a dedicated Twitter thread.
Timmer suggested considering Bitcoin’s supply curve to achieve a more conservative trajectory for price growth. The result, he mused, had already retrospectively captured BTC price action more accurately than the raw S2F forecasts.
The close-up below shows that this more modest supply model was (in hindsight) more accurate than the original S2F predictions for this halving cycle. /15 pic.twitter.com/65WgS4Hody
— Jurrien Timmer (@TimmerFidelity) June 2, 2022
“If true, it suggests it’s still robust, but less room for improvement than before. Maybe even several years sideways consistent with the halving cycle and likely continued volatility,” he continued.
PlanB had noted that May’s monthly close was Bitcoin’s lowest since December 2020.
As Cointelegraph reported, the next block subsidy halving event is increasingly appearing as a line in the sand for a return to bullish strength.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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