Bitcoin’s price action cooled as it hovered above $103,000 on May 30th, sparking interest in what’s next for the cryptocurrency. A rare mid-range signal from the Sharpe Ratio, a metric used to gauge risk, suggests that the market may not be overheated just yet.
The Sharpe Ratio had not reached its higher trend line, indicating moderate risk and a possibility for growth without excessive euphoria. However, traders should exercise caution until the metric reaches extreme-risk territory. The recent $2.32 billion deal by Trump Media to buy Bitcoin could drive changes in the market due to current trends.
Bitcoin’s 12.39% increase to $105,000 over the past 30 days has made it more valuable with growing interest and fewer coins available. The Sharpe Ratio pointed to moderate risk and growth without overexcited behavior. Historically, similar levels have led to rallies and corrections.
The market is currently focused on the critical zone of $97,000-$99,000, where three factors converge: the mid-range at $99,638, the 0.382 Fibonacci retracement at $97,622, and the 200 daily moving average at $94,717. Securing this area could lead to a reversal or bounce, but failure may push prices toward support zones.
Traders holding Bitcoin should wait for more obvious signs at main support and resistance points. The 200-day moving average trended upward, providing potential momentum if reached again. For now, traders are advised to exercise caution until clear signs emerge.
Source: https://ambcrypto.com/bitcoin-in-make-or-break-zone-trump-media-hints-at-whats-next