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.
Traders are calling for lows above $28,000
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.
USD Bitcoin – Weak and bad looking, no urgency, low main trend.
Should see a rebound, some capitulation, at least early in the cycle. be careful. pic.twitter.com/fYfZka2R1C
– Bob Lucas (@BobLoukas) May 27, 2022
Profitable supply favors bears
At the same time, viewing the entire network as a whole raises concerns that current prices are unaffordable.
Kripto Mevsimi, a contributing analyst for on-chain analytics platform CryptoQuant, analyzed supply as a percentage of profits, painted Pessimistic conclusion.
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.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.