Bitcoin price approaches key support levels to avoid 'cascade south'

2 years ago

Bitcoin (BTC) clung to $29,000 astatine the May 27 Wall Street unfastened arsenic important enactment levels laic conscionable hundreds of dollars from spot price.

Trader demands higher debased supra $28,000

Data from Cointelegraph Markets Pro and TradingView confirmed volatility erstwhile again waning successful a frustrating week's terms action.

BTC/USD recovered itself successful a choky corridor connected the day, and for Cointelegraph contributor Michaël van de Poppe, it would not instrumentality overmuch deviation to disrupt the presumption quo.

"Technically speaking, erstwhile it comes to Bitcoin, you intelligibly privation to spot a higher debased happening here, and if that we happens, we tin commencement seeing continuation," helium said successful his latest YouTube update.

Levels to clasp present were adjacent — $28,600 and $28,200 successful bid to debar a rematch of the week's $28,000 low and hazard giving up the accidental of a higher debased construction.

"If that is lost, past I'm going to expect ourselves to get towards $26,000 arsenic past we're going to commencement cascading southbound adjacent more," helium concluded.

Equally wary was commentator Bob Loukas, who eyed the Bollinger Bands volatility indicator connected the time to pass of imaginable incoming upset.

$BTC - Weak and not a bully look there, nary urgency, with that superior inclination lower.

Should person seen astatine slightest a rally aboriginal successful the cycle, coming of immoderate capitulation. Stay safe. pic.twitter.com/fYfZka2R1C

— Bob Loukas (@BobLoukas) May 27, 2022

Across societal media, the consciousness that a capitulatory move was coming for crypto prevailed, this having characterized sentiment passim caller weeks.

In-profit proviso favors bears

Meanwhile, looking astatine the web arsenic a full fueled concerns that existent prices could not endure.

Analyzing the percent of the proviso successful profit, Kripto Mevsimi, a contributing expert astatine on-chain analytics level CryptoQuant, drew bearish conclusions.

Currently, astir 55% of the proviso was successful profit, helium explained, and compared to humanities behavior, much terms capitulation should participate successful bid to supply immoderate warrant of a macro bottom.

First, however, determination should beryllium a sideways play for BTC/USD which precedes the last dip. This would marque existent terms show chime with the 2018 carnivore marketplace and the March 2020 crash.

"Next; 2-3 months of boring terms action. Then past capitulation imaginable with %30-%50 further terms drop," helium summarized.

An accompanying illustration compared the 3 phases opening with the 2017 precocious of $20,000.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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