A crucial BTC price support is coming back into the picture with Bitcoin bulls struggling below $27,000.
Bitcoin (BTC) fell to multi-day lows at the June 5 Wall Street open as action heated up on exchanges.
Van de Poppe: Trend line failure could mean "bottom isn't in yet"
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $26,640 on Bitstamp.
Down nearly 3% versus the weekend’s highs, the pair looked weak as key support lines inched closer.
Among these was the 200-week moving average (MA), now at $26,400, which had weathered repeated tests to stay as support since mid-March.
“Bitcoin is going to get another retest of support at the 200-Week MA (purple),” Keith Alan, co-founder of monitoring resource Material Indicators, warned in commentary on the weekly chart.
“IMO, a Weekly candle close below the 200-Week MA would be an indication that the bottom isn't in yet. Things could get spicy this week. The last line of defense is at the 50-Month MA around $25.5k.”
Others eyed similar areas for bulls’ last stand to take place.
“Bitcoin is, still, stuck in the range-bound area where $26,600 is the important area to hold,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on the day.
“Couldn't break $27,500. The standard Sunday/Monday dump took place, let's see what the week will bring going forward. Pretty relaxed macro-economic week too.”
Material Indicators itself, meanwhile, uploaded a chart of liquidity on largest global exchange Binance.
Commenting on Alan's findings, it argued that the United States Federal Reserve decision on interest rates due June 14 would be the ultimate "do or die" moment.
"If Technical Support levels at the key Moving Averages is lost, the next level of support would be around the 2017 Top, which has confluence with the trend line," it wrote.
"BTC liquidity remains thin on both sides of price. Markets await the June 14th FED rate hike decision."
Exchange speculation heats up
Trader Daan Crypto Trades was among those who noted noises coming from futures markets, where open interest was increasing.
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Action going on over at the Binance $BTC Futures pair.
— Daan Crypto Trades (@DaanCrypto) June 5, 2023
Seeing some big walls towards both sides. Some of them getting filled while some are likely spoof orders.
Meanwhile, Open Interest is going up and fundingg is going down. pic.twitter.com/Rq3vQDuNJo
Trading suite Decentrader likewise noted a "significant increase" in open interest, with long positions becoming more prominent before the Wall Street open.
This seems to mostly be coming from #Bitcoin Longs as we are seeing an increase in both Funding Rates and the Long/Short ratio. https://t.co/I48kl4kbGW pic.twitter.com/pDf57zs2W4
— Decentrader (@decentrader) June 5, 2023
Data from monitoring resource CoinGlass meanwhile showed liquidations more impacting longs for June 5, with cross-crypto position losses totaling $33 million at the time of writing.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
