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Bitcoin (BTC-USD) saw some buying pressure in Monday mid-afternoon trading, extending a modest rally that started at the beginning of this past weekend. In the wake of a broader risk-on day, cryptocurrency-exposed stocks gained some ground, too.
After suffering a notable drop last week on liquidity concerns, bitcoin (BTC-USD) bounced 2% to $27.46K at 2:50 p.m. ET, trading at the lower end of the $27K-$30K range that’s persisted since mid-March. Ethereum (ETH-USD) also perked up 1.6% to $1.83K.
For the week ended May 12, digital asset investment products experienced a capital flight totaling $54M, marking the fourth straight week of outflows, according to a report by CoinShares issued on Monday. Some 80% of the outflows came from bitcoin (BTC-USD) funds.
Woes in the banking system, a looming economic downturn and higher BTC network congestion are some of the factors weighing on the price of bitcoin (BTC-USD). While the digital token has gained over 60% since the start of 2023, it’s been struggling for about a month to break out of the $30K psychological resistance level.
For a purely technical perspective on BTC, Seeking Alpha contributor Muhammad Umair pointed out Friday that the Relative Strength Index was “in the overbought territory and the emergence of a head and shoulders pattern on the daily chart point towards a potential downward momentum.”
Crypto-related stocks changed hands mostly higher at the time of writing, including Bit Digital (NASDAQ:BTBT) +11.1%, Bitfarms (NASDAQ:BITF) +11.2%, Hut 8 Mining (NASDAQ:HUT) +7.8%, CleanSpark (NASDAQ:CLSK) +6.9% and Coinbase Global (NASDAQ:COIN) +4.9%.
