Bitcoin (BTC) experienced a drop in value to multi-day lows during the June 5 Wall Street opening as trade activity on exchanges intensified.
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.”
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.
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.
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Action going on over at the Binance $BTC Futures pair.
Seeing some big walls towards both sides. Some of them getting filled while some are likely spoof orders.
Meanwhile, Open Interest is going up and fundingg is going down. pic.twitter.com/Rq3vQDuNJo
— Daan Crypto Trades (@DaanCrypto) June 5, 2023
Trading suite Decentrader also observed a “significant increase” in open interest, with long positions becoming more prominent before the Wall Street open.
— Decentrader (@decentrader) June 5, 2023
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.
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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.