Bitcoin (bitcoin) recovered from a sharp decline at Wall Street’s open on May 26 as the market quickly ran out of buying support.
Bitcoin volume surges, more expected
The subsequent rally saw a rally above $29,000, where Bitcoin is trading at $29,000 at the time of writing.
For Cointelegraph contributor Michaël van de Poppe, filling the bid in one fell swoop was enough to secure some new upside.
Now we are happy to go up because all the liquidity is down.
— Michaël van de Poppe (@CryptoMichNL) May 26, 2022
he Add to His existing targets for BTC/USD — $32,800 and $35,000 — remain valid.
Meanwhile, on-chain monitoring resource Material Indicators analysing order book data warned that future declines could encounter less resistance given that liquidity remains low.
“We are seeing a lot of Bitcoin liquidity change hands today. Every time a bid wall comes up, it gets absorbed,” it said Tell Twitter followers and a graph of the major exchange Binance.
“There is no bigger bid wall at the moment, only about $122 million between $28,000 and $25,000. Looking forward to seeing more BTC moving on-chain.”
Crypto’s trading account, Il Capo, continues to be conservative on recent price action, expected The current rally will be the “last bull trap” before returning to $25,000 based on order performance.
As such, May 26 stands out from the rest of the week as volume returns in the BTC/USD market.As Cointelegraph reported, its absence is becoming Sources of Analyst Concern.
Bitcoin’s ‘Most Important Chart’ Brings Recovery Hopes
Casting the network even further, market commentators are keen to see signs of an overall shift in Bitcoin trends.
For popular analyst Root, the signs came from the actions of long-term holders (LTH) on the day.
According to on-chain data, LTH eventually slowed BTC sales and its cost base leveled off. The cost basis refers to the total purchase price of BTC by LTH accounts, and when the price falls, it reflects the decline in LTH resolution.
Comment in the Twitter thread, Root describe The data “may be the most important chart in BTC right now.”
“Over the past few months, we have capitulated to LTH – as evidenced by the rapidly declining LTH cost base,” it wrote.
“Rising is the first sign that LTH may have stopped capitulating! Beware: early signals, but ultimately a trend change!”
He added that those LTH entities that sold were those who bought BTC at the top, so these sales were of a capitulation nature to them.
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