Bitcoin (BTC) looked set to lose $27,000 as support on May 17; Traders were looking for new lows.
Low liquidity
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 crossed the $27,000 mark several times the previous day; That area, which had been the focus of the low season, was now in danger of collapsing.
“3 wave rise towards resistance, followed by retest and rejection of resistance zone”, Abbreviation On popular crypto trader Tony’s recent activity.
He added that a possible target to watch out for was $26,400.
If the breakout continues, the TraderSZ account previously predicted it would enter an “extension candle”.
Daily BTC. Looks like it’s falling apart. If true, we should soon have a large bearish spreading candle.
“little long download early morning”, Continuous Another popular trader, OldCrypto Trades.
“In the Bybit futures chart we can see how the requests were covered and from there the spot moved the price lower to remove the longs that had accumulated in this mini range. In general, it remains unstable and without a clear direction.
Analyzing the order book setup on Binance, monitoring resource content indicators noted a general lack of liquidity.
High-volume traders, he revealed, had minimized activity as a result, perhaps because the absence of currencies exposed them to slippage.
Liquidity is so thin on either side of bitcoin’s price that whales have to split their market orders into smaller orders to reduce slippage or wait for pockets of liquidity before hitting the button. I checked to see how and…
However, looking more broadly, a companion narrative for many was still the concept of continuous “choppy” price action.
The current trading range, presented as a key support and resistance area going into 2021, shows no signs of relinquishing control.
“For the next few days, I expect the price to increase between $27,200 and $26,500,” the titan of crypto wrote in one of his market assessments.
BTC price target
Although bullish in the long term, Stockmoney Gecko Trading Group … Offered A possible downside target of $25,000 on the day.
Acknowledging the “head and shoulders” formation that played out during April – a previously reported bearish sign – he also put forward the 25-week simple moving average (SMA) as a potential support line.
The 25-week SMA fell to $23,100 today, but looks set to move up towards a possible retest in June.
However, another post called the general shape of the price action a “well-known” pattern, referencing similar movements in US equities over the years. These moves eventually led to a breakout to the upside.
Bitcoin is attempting to retest the neckline on this well-known chart pattern.
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