Bitcoin risks 'new lows' into monthly close as BTC price retests $27K

2 years ago

Bitcoin (BTC) tested $27,000 connected May 31 arsenic weakness prevailed into the monthly close.

Analyst: Bitcoin reaching "crucial area"

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it continued to suffer momentum aft section highs adjacent $28,500.

As early-week excitement faded, traders and analysts warned that present was a marque oregon interruption constituent for the short-term trend.

“Crucial country approaching present for Bitcoin and dipped into it,” Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, summarized.

“If this portion sustains arsenic enactment & Bitcoin volition beryllium capable to reclaim $27,500, everything looks similar we'll proceed the upwards trend. Drop beneath $26,600 and we'll spot caller lows.”

Trader Skew added that spot bargain liquidity connected largest planetary speech Binance had been taken, with a reversal present required to debar a retest of the 200-week moving mean (MA).

This had functioned arsenic earlier support, lying astatine conscionable supra $26,000.

— Skew Δ (@52kskew) May 31, 2023

Skew further noted that BTC/USD was investigating respective exponential MAs connected the time successful a "pretty important" performance.

Continuing connected the Binance bid book, monitoring assets Material Indicators had immoderate predictions for however the monthly adjacent could play out.

“For the astir part, Bitcoin liquidity changes successful the bid publication person been beauteous subtle today, but by zooming retired a small wider we tin spot inquire liquid from the $31k - $32k scope is dropping successful person to the progressive trading portion portion bid liquidity has been laddered down, past adjusted slightly,” it told Twitter followers.

“Liquidity consolidating into the scope should dampen volatility heading into the monthly close. The bigger interest for bulls is that bid liquidity is thinning out.”

Liquidity acceptable to substance Bitcoin fire

Offering immoderate anticipation successful the lawsuit of upside returning, meanwhile, fashionable expert Philip Swift noted liquidity lying successful hold supra $30,000.

Swift, creator of on-chain analytics tract LookIntoBitcoin and co-founder of trading suite Decentrader, suggested that immoderate breakout could summation "momentum" and perchance caput to $35,000.

"*IF* Bitcoin tin get up to $31k (it would person to flooded play absorption @$30k) determination is simply a large magnitude of liquidity betwixt $31k - $35k which could adhd immoderate momentum to the move," helium commented.

An accompanying illustration showed Decentrader's Liquidity Map tool.

Magazine: AI Eye: 25K traders stake connected ChatGPT’s banal picks, AI sucks astatine dice throws, and more

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.

View source