As the curtain rose on Wall Street on June 5th, Bitcoin BTC $25,733 experienced a multi-day low amid escalating exchange activity.
Are we Due for a Rerun of the Trend Line Examination?
BTC/USD values, as presented by Cointelegraph Markets Pro and TradingView, dipped to a low of $26,640 on Bitstamp. Witnessing a nearly 3% fall from the weekend’s peak, the pair’s vulnerability was palpable as crucial support lines were rapidly encroaching.
One such important support line is the 200-week moving average (MA), currently standing at $26,400. Since mid-March, this line has managed to maintain its status as a support, despite numerous challenges.
Keith Alan, co-founder of the monitoring platform Material Indicators, sounded an alarm in his analysis of the weekly chart, stating, “Bitcoin is poised for a retest of the 200-Week MA (purple) support line.”
In his opinion, a weekly candle closing below the 200-Week MA might suggest that we haven’t hit the bottom yet. He cautioned that the week could be fraught with volatility, emphasizing that the last bastion lies at the 50-Month MA around $25.5k.
Other analysts are also pinpointing similar levels for the potential last stand of the bulls.
Keeping a Watchful Eye on Crucial Support Levels
Michaël van de Poppe, founder and CEO of trading firm Eight, highlighted in a tweet, “Bitcoin remains ensnared in the range-bound region, with $26,600 marking a significant level to maintain.” He expressed the failed attempt to cross $27,500 and alluded to the customary Sunday/Monday slump, while keeping an optimistic outlook for the upcoming week.
Touching upon Alan’s insights, the general consensus is that the U.S. Federal Reserve’s impending decision on interest rates, scheduled for June 14, would be the decisive moment to either make or break the scenario. “Should Bitcoin fail to hold the key Moving Averages as technical support, the next likely support could align with the 2017 peak, which intersects with the trend line,” was the general consensus.
As the market keenly awaits the Fed’s interest rate decision, Bitcoin liquidity continues to fluctuate on both sides of the coin.
Increased Speculation on Exchanges
Daan Crypto Trades, a notable trader, pointed out the rising open interest in futures markets, an indicator of growing speculation. Similarly, trading suite DecenTrader observed a “considerable surge” in open interest, with long positions gaining prominence as Wall Street opened for the day.
According to the CoinGlass monitoring resource, the market felt the burn more on the long side on June 5, with cross-crypto position losses amounting to $33 million at the time of reporting.
Understanding these market trends and the predictions of experts is crucial for making informed investment decisions. A well-rounded perspective of the economic landscape, combined with sound knowledge of cryptocurrencies, can empower investors in this volatile market. As we continue to track Bitcoin’s trajectory, it’s important to stay updated on key decisions, such as the upcoming Federal Reserve’s interest rate verdict, which can significantly impact Bitcoin’s future.