Main page » Bitcoin News » Bitcoin price will get ‘another test’ of 200-week trend line — analyst
Bitcoin News

Bitcoin price will get ‘another test’ of 200-week trend line — analyst

Bitcoin price will get 'another test' of 200-week trend line — analyst

Bitcoin (BTC) experienced a drop in value to multi-day lows during the June 5 Wall Street opening as trade activity on exchanges intensified.

BTC/USD 1-hour candle chart on Bitstamp. Source: TradingView

Van de Poppe: Not meeting trend line expectations could signify that “bottom isn’t in yet”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $26,640 on Bitstamp. Down by almost 3% compared to highs from the weekend, the pair appeared weak as it approached crucial support lines.

One of these crucial support lines was the 200-week moving average (MA), now at $26,400, which has been tested constantly to remain as support since mid-March.

“Bitcoin is going to get another retest of support at the 200-Week MA (purple),” Keith Alan, co-founder of monitoring resource Material Indicators, warned about the weekly chart.

“IMO, a Weekly candle close below the 200-Week MA would be an indication that the bottom isn’t in yet. Things could get spicy this week. The last line of defense is at the 50-Month MA around $25.5k.”

BTC/USD annotated chart. Source: Keith Alan/ Twitter

Other observers also looked at similar areas for potential resistance from bulls to occur.

“Bitcoin is, still, stuck in the range-bound area where $26,600 is the important area to hold,” Michaël van de Poppe, founder and CEO of trading firm Eight, announced to Twitter followers on the day.

“Couldn’t break $27,500. The standard Sunday/Monday dump took place, let’s see what the week will bring going forward. Pretty relaxed macro-economic week too.”

Material Indicators itself published a chart of liquidity on largest global exchange Binance.

BTC/USD order book data for Binance. Source: Material Indicators/ Twitter

Commenting on Alan’s findings, it asserted that the United States Federal Reserve meeting on interest rates scheduled for June 14 would be the definitive “do or die” moment.

“If Technical Support levels at the key Moving Averages is lost, the next level of support would be around the 2017 Top, which has confluence with the trend line,” it explained.

Exchange speculation heats up

Trader Daan Crypto Trades was one of the many that recognized noises emerging from futures markets, where open interest was increasing.

Related: ‘$31K was not the end’ — 5 things to know in Bitcoin this week

Trading suite Decentrader also observed a “significant increase” in open interest, with long positions becoming more prominent before the Wall Street open.

Data from monitoring resource CoinGlass demonstrated that longs impacted liquidations more on June 5, with the total cross-crypto position losses amounting to $33 million at the time of writing.

Crypto liquidations chart (screenshot). Source: CoinGlass

Magazine: Home loans using crypto as collateral: Do the risks outweigh the reward?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.