Bitcoin price nears key support level to avoid ‘south’

Bitcoin (bitcoin) held on to $29,000 at the Wall Street open on May 27, as key support was just a few hundred dollars away from spot prices.

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

Traders are calling for lows above $28,000

data from Cointelegraph Market Pro and Transaction view Amid a dismal week of price action, lower volatility was reconfirmed.

BTC/USD found itself in a narrow channel on the day, and for Cointelegraph contributor Michaël van de Poppe, it doesn’t take much of a deviation to disrupt the status quo.

“Technically, when it comes to Bitcoin, you obviously want to see a higher low here, and if that happens, we can start to see a continuation,” he said. Say in his latest YouTube update.

The levels to hold for now are around – $28,600 and $28,200 to avoid a re-emergence This week’s low of $28,000 And run the risk of forgoing higher and lower construction opportunities.

“If this is lost, then I would expect myself to hit $26,000 because then we’ll start going further south,” he concluded.

Commentator Bob Loukas was equally vigilant, following the Bollinger Bands Volatility indicator that day to warn of potential jitters.

On social media, the feeling of a surrender move is future For the popularity of cryptocurrencies, this Has characteristic emotions in recent weeks.

Profitable supply favors bears

At the same time, viewing the entire network as a whole raises concerns that current prices are unaffordable.

related: Small Bitcoin whales may stop BTC price ‘capitulation’ – analysis

Kripto Mevsimi, a contributing analyst for on-chain analytics platform CryptoQuant, analyzed supply as a percentage of profits, painted Pessimistic conclusion.

He explained that at the moment, about 55% of the supply is profitable and there should be more price capitulation to supply compared to historical behavior Some reassurance from a macro bottom.

First, however, BTC/USD should have a sideways period before finally falling. This would put the current price performance in line with the 2018 bear market and the March 2020 crash.

“Next; 2-3 months of tedious price action. Then one last capitulation could result in an additional 30%-50% price drop,” he concluded.

The accompanying chart compares three stages from the 2017 high of $20,000.

Bitcoin supply in profit with BTC/USD annotated chart. Source: CryptoQuant

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