Bitcoin (BTC) seemed about to lose $27,000 as support the 17th of May; traders were on the lookout for new lows.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was trading near $26,800 at the time of writing.
The pair had staged multiple crosses of the $27,000 mark the previous day; that zone, which formed a focus of low weather, was now at risk of rupture.
“3 waves up towards resistance, followed by a retest and rejection of the resistance zone”, summarized popular Crypto trader Tony about recent activity.
He added that a potential target to look out for was $26,400.
The check TraderSZ had previously forecast a “spanning candle” to enter should the breakout continue.
$BTC daily. Looks like it’s breaking down. If correct we should get big down expansion candle soon. https://t.co/MAV2GY6mKn pic.twitter.com/24GXaMJPXR
—TraderSZ (@trader1sz) May 16, 2023
Daily BTC. It looks like it is breaking down. If correct, we should get a big bearish spreading candle soon.
“Little long download early in the morning”, continuous another popular trader, Daan Crypto Trades.
“In the Bybit futures chart we can see how the requests were covered and from there the spot took the price down to remove the longs that accumulated in this mini range. In general, it continues to be choppy and without clear direction.”
When analyzing the configuration of the order book on Binance, the monitoring resource Material Indicators noted a general lack of liquidity.
Higher-volume traders, he revealed, had reduced activity to a minimum as a result, perhaps because the absence of coins exposed them to possible slippages.
Liquidity on both sides of #Bitcoin price is so thin that whales have to either break up their market orders into smaller order sizes to minimize slippage or wait for pockets of liquidity before smashing buttons.
Cranked the Volume Percentile filter way down to see how and… pic.twitter.com/dpXddCKgiX
— Material Indicators (@MI_Algos) May 16, 2023
Liquidity on either side of the bitcoin price is so thin that whales have to split their market orders into smaller orders to minimize slippage or wait for pockets of liquidity before hitting buttons. I pulled down the Volume Percentile filter to see how and…
However, looking more broadly, an accompanying narrative for many remained the concept of continued “choppy” price action.
The current trading range, posing as a key support and resistance zone going into 2021, showed no sign of giving up control.
“For the next few days, I expect the price to move between $27,200 and $26,500,” Titan of Crypto wrote. in one of his market valuations.
The BTC price target
Although bullish in the long term, the trading group Stockmoney Lizards offered a potential downside target of $25,000 on the day.
Acknowledging the “head and shoulders” formation that unfolded during April -a previously reported bearish sign- also listed the 25-week simple moving average (SMA) as a possible support line.
The 25-week SMA came in at $23,100 today, but is set to rise towards a potential retest in June.
Nevertheless, another post called the general shape of price action a “well-known” pattern, referencing similar movements in US equities in past years. These moves eventually led to a breakout to the upside.
is attempting to retest the neckline in this well-known chart pattern. pic.twitter.com/e6YtBYBRvt
— Stockmoney Lizards (@StockmoneyL) May 17, 2023
Bitcoin is trying to retest the neckline on this well known chart pattern.
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