Bitcoin (BTC) held its most recent gains through May 27 as traders called for a change in “bearish” market sentiment.
A trader expects “a pretty big move” in the price of BTC
US macroeconomic data for the week ended with a surprise, as the new Personal Consumption Expenditures (PCE) index showed that the economy is weathering the tightening of financial conditions much better than expected.
Markets then began to anticipate that the Federal Reserve would raise interest rates in June, which should put a damper on risky assets, but failed to stop the BTC price rally.
However, despite the recovery in prices, the mood remained overly cautious for some.
“Retail is so extremely bearish on Bitcoin and Crypto, it’s almost crazy,” argument, Michaël van de Poppe, founder and CEO of the trading firm; Eight.
“People are stuck in the 2022 mindset.”
Popular trader Skew noted Bitcoin’s strong reaction at the 200-week moving average (MA) near $26,000, with more key trend line challenges now in the offing.
“Price is trying to recapture the 100D MA after a nice move up from the 200-week MA. Price is currently between the 4H EMA and 1-day EMA”, according to analysis of the 4-hour chart of the BTC/USD pair from the previous day.
“Expecting a pretty big move soon, the tipping point is here in my opinion.”
Other data concluded that the “froth” had disappeared from exchanges, along with more than $300 million in open interest on the highest-volume exchange Binance.
$BTC Binance Open Interest
Price is hovering around previous breakdown & majority of the OI has been cleared out
-12K BTC ($320.9M)
a lot less froth in the market meaning whichever way spot moves, probably wouldn’t fade it pic.twitter.com/dgb9OW2GnB
— Skew Δ (@52kskew) May 27, 2023
Skew is not the only well-known voice advocating for a major change in BTC price behavior from now on. This week, Checkmate, Glassnode’s lead on-chain analyst, predicted: “Big moves are coming.”
A later review of some key on-chain metrics presented the BTC/USD pair at a “decisive point.”
Bitcoin price continues to “consolidate”
Trader and analyst Rekt Capital stated that more force was still needed to turn the trajectory in favor of the bulls.
“BTC still in the middle of the red downtrend channel, just consolidating here with the red resistance area above the crucial one to beat if sentiment is to turn decisively any time soon,” wrotereferring to a 1-day time frame chart.
That chart also showed the bearish head and shoulders pattern, something Rekt Capital previously warned could result in a longer-term bear phase, including a trip to $20,000.
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