2 years ago
Bitcoin (BTC) neared two-month lows connected May 12 amid fears that a “head and shoulders” signifier would enactment bears ahead.
BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingViewAnalysis connected BTC price: "Welcome to bearadise"
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $26,100 connected Bitstamp — its lowest since March 17.
Despite encouraging macroeconomic conditions for hazard assets, Bitcoin failed to capitalize connected imaginable for gains arsenic bid liquidity headed lower.
“Welcome to bearadise,” on-chain monitoring assets Material Indicators summarized.
A illustration uploaded to Twitter the time anterior showed main bargain enactment present astir $25,750, with BTC/USD eating liquidity higher up overnight.
BTC/USD bid publication information (Binance). Source: Material Indicators/ TwitterOn regular timeframes, concerns among marketplace participants frankincense focused connected whether the brace would present enactment little aft 3 section tops.
This “head and shoulders pattern,” present intelligibly disposable connected the chart, would make a antagonistic precedent should it confirm.
“We simply cannot fto the #Bitcoin caput and shoulders assemblage win,” fiscal commentator Tedtalksmacro insisted.
“Back supra $27k things volition get precise interesting…”
BTC/USD annotated illustration with "head and shoulders" signifier marked. Source: Tedtalksmacro/ TwitterTrader and expert Moustache meantime showed that it was already clip for the cardinal 200-week moving mean (WMA) to person a retest.
A “make oregon interruption level,” the 200 WMA has likewise served arsenic enactment since mid-March.
#Bitcoin (W)$BTC is presently investigating the MA 200 (W). This enactment marked the bottommost successful 2015,2019 and 2020.
At the aforesaid time, $BTC is investigating the mediate enactment successful the Gaussian Channel.
This is truly beardown enactment and a marque it oregon interruption it level imo. pic.twitter.com/auzL125G1W
As Cointelegraph reported, however, aggregate traders were already looking for a deeper retracement to $25,000 oregon adjacent below.
— Mikybull Crypto (@MikybullCrypto) May 12, 2023These included nominally bullish Jelle, who conceded connected the time that Bitcoin whitethorn marque a “last stab” astatine the $25,000 people earlier reversing.
He noted that comparative spot scale (RSI) readings were not serving sellers good connected debased timeframes.
“Bitcoin nuked consecutive done support, adjacent large portion of involvement is astir 24-25k,” helium tweeted.
“RSI is failing to propulsion into the extremes, suggesting sellers are getting exhausted. One past stab into 25k that gets rapidly bought up, would marque sense.”
BTC/USD annotated 4-hour illustration with RSI. Source: Jelle/ TwitterLongs get bolder arsenic BTC terms sinks
More assured that the worst of the losses would soon beryllium implicit was expert Philip Swift, co-founder of trading suite Decentrader and creator of information assets LookIntoBitcoin.
Related: Bitcoin terms tin ‘easily’ deed $20K successful adjacent 4 months — Philip Swift
in a tweet connected the day, helium noted that portion terms has been falling, the long/short ratio has diverged, with agelong positions present prevalent.
Im not convinced we person a large correction coming connected this Bitcoin determination down.
Near word though it is absorbing to enactment that the long/short ratio has been climbing arsenic terms has trended down. pic.twitter.com/sefGEi39CD
Additional information from Coinglass enactment the long/short ratio astatine 58.7% agelong astatine the clip of penning connected May 12.
BTC long/short ratio chart. Source: CoinglassMagazine: Unstablecoins: Depegging, slope runs and different risks loom
This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.
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