the next crypto bull run and contrasts the lack of regularity in the West, particularly in the U.S.
Bitcoin picked up a bid during the Asian hours and rose more than 2% to $27,500, probing the former support-turned-resistance of the horizontal trendline connecting the first and second trough of the. The cryptocurrency fell below the trendline early this month, confirming the H&S breakdown and opening doors for a deeper slide toward $25,000.
"This looks like a non-macro-related spot-based move, and the timing coincides with the news that Hong Kong will allow retail trading of BTC and ETH on licensed digital asset platforms as of June 1," Noelle Acheson, author of the Crypto Is Macro Now newsletter, said in Tuesday's edition."This is not a total surprise – the ruling and the timing were largely expected. Butmatters more in a lacklustre market with headwinds coming from other vectors," Acheson added.
Per Acheson, Hong Kong's decision to green light crypto trading for retail investors does not mean there will be a flood of demand for cryptocurrencies, as local traders are probably already accessing the market through offshore venues. Nevertheless, the announcement is a"a welcome reminder that the crypto adoption pool is likely to grow considerably over the next year and beyond," Acheson noted.
"As long as prices remain below the neckline [horizontal trendline] of this [H&S] pattern as well as the 20-day moving average, we should expect further downside to $25,250 and posibly $24,000," wrote the analysts there.