Why Bitcoin is stuck below the $28,000 resistance

In this week's episode of The Market Report, Cointelegraph's resident expert explains why Bitcoin's price is stuck near $27,000 and the next price level for the king of cryptocurrencies.

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In the May 23 episode of The Market Report, analyst and writer Marcel Pechman discusses why Bitcoin (BTC) is stuck near $27,000 and how the macroeconomic scenario has become more critical than ever for a possible escape. Additionally, the show dissects what US President Joe Biden said about crypto traders being wealthy tax cheats.

The first news article shows that the largest price moves tend to occur after periods of low volatility, as traders tend to become overconfident and increase their leverage. This creates a perfect storm for a decisive breakout, so ultimately stop-loss orders and sell-offs further amplify the price change.

Pechman doesn't think the US Federal Reserve's decision on June 14 will be the trigger everyone has been waiting for, as its price is relatively high as long as the current rate of 5% will be maintained. In his 20 years of trading experience, Pechman says these events tend to pop up out of nowhere.

The show dissects what Biden said about wealthy crypto traders cheating on their taxes. The purported protections for crypto traders refer to tax loss harvesting – a strategy used by investors to reduce their overall tax liability.

According to Pechman, tax loss harvesting is nothing new and is relatively common in the stock, mutual fund and commodity markets. There's no reason to baselessly differentiate between Biden's asset classes, and Pechman doesn't believe the US president is in a negotiating position at this time, with less than 10 days before a possible default. /p>

The show's third and final article covers speculation of Bitcoin's impending breakout towards $29,000. The recent sideways price movement is eerily similar to early April, when Bitcoin's 12-hour chart ranged between $27,800 and $28,700 for 11 days.

However, Pechman reveals few similarities between the early April bullish breakout and the current state of Bitcoin futures premium and options risk measurement. The bottom line? This time it's different, which isn't to say the bulls can't move forward; it's just less likely according to these stats.

Don't miss it! The show is available exclusively on the Cointelegraph Markets & Research YouTube channel.