Tuesday, 30 May 2023

Crypto News

BTC price bounces at $25.8K lows amid warning over low whale interest

BTC price bounces at $25.8K lows amid warning over low whale interest

Bitcoin (BTC) sought to pass $27,000 on May 13 after a “scam wick” produced new two-month lows.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Traders: BTC price must retain $26,500

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it recovered from a flash dip to $25,800 on Bitstamp.

The pair saw weakness after the start of the week’s final Wall Street trading session, briefly cutting through the key 100-day and 200-week moving averages (MAs) before rebounding.

BTC/USD 1-hour candle chart (Bitstamp) with 100-day, 200-week MA. Source: TradingView

As the weekend began, traders were split over the likely course of events to come.

“Nice daily close. Has to hold 26.5K going forward. That’s the line in the sand for me,” Daan Crypto Trades told Twitter followers.

BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter

Michaël van de Poppe, founder and CEO of trading firm Eight, agreed that the May 12 daily candle had turned out to be “good.”

Analysis prior to the local lows likewise flagged $26,500 as an important level to reclaim in order to consider long positions.

For fellow trader Crypto Tony, the potential long flip level was higher at $27,300 despite the “nice bounce” overnight.

“We are also in the weekend now, so liquidity itself will be far less,” he added in a tweet on the day.

BTC/USD annotated chart. Source: Crypto Tony/ Twitter

200-week trend line loss would “invalidate” bull thesis

Turning to the state of the Binance order book, meanwhile, monitoring resource Material Indicators remained far from optimistic.

Related: ‘Don’t short when it’s dark green’ — How to trade the 2024 Bitcoin halving

A lack of bid liquidity formed a major point of concern, with the largest cohorts of whales abstaining from the market.

“IF there is a bullish case to be made, it’s that price over shooting technical R & S has been the norm in #crypto, and that price is currently back above the 200-Week MA,” part of analysis after the lows stated.

“Perhaps the most neutral thing I could say is that consolidating in this range would be healthy because it would give the market the…

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