Analyst: Bitcoin reaches a “crucial zone”
As the enthusiasm from earlier in the week faded, traders and analysts warned that it was now a breaking point for the short-term trend.
“If this area holds as support and bitcoin recovers to $27,500, it looks as though we will continue the uptrend. If it breaks below $26,600, we will see new lows.”
the trader Skew added that spot buying liquidity on the world’s largest exchange Binance had been taken, and a reversal was required to avoid a retest of the 200-week moving average (MA)..
This had worked as previous support just above of USD 26,000.
$BTC Binance Spots
and walls filled now lol
strength is what you want to see now else straight back to 200W MA pic.twitter.com/D2XsU6mrk8
— Skew Δ (@52kskew) May 31, 2023
Bitcoin Binance Spot
and the walls are full now lol
What you want to see now is strength; otherwise, we will go straight back to the 200-week MA. pic.twitter.com/D2XsU6mrk8
Skew commented also that such a BTC/USD pair was testing several exponential MAs on the day, which was in a “quite important” performance.
Continuing the Binance Order Book, the Monitoring Resource Material Indicators had some predictions on how the monthly close could play out.
“For the most part, bitcoin liquidity changes on the order book have been quite subtle today, but zooming in a bit further we can see that liquidity for the $31,000-32,000 range is falling closer to the active trading zone, while that the liquidity of the offer has been reduced, and then it has been adjusted slightly”, said to his Twitter followers.
“The consolidation of liquidity in the range should cushion the volatility ahead of the monthly close. The biggest concern for bulls is that supply liquidity is thinning out.”
Liquidity is ready to stoke the bitcoin fire
Offering some hope should the gains return, popular analyst Philip Swift noted that liquidity is lurking above $30,000.
swiftcreator of on-chain analytics site LookIntoBitcoin and co-founder of DecenTrader trading suite, suggested that any breakout could gain “momentum” and potentially head for $35,000.
“If Bitcoin can get to $31,000 (it would have to break the $30,000 weekly resistance), there is plenty of liquidity between $31,000 and $35,000, which could add some momentum to the move,” commented.
An accompanying chart shows Decentrader’s Liquidity Map tool.
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