Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K

bitcoin (BTC) tested $27,000 on May 31 as weakness prevailed at the monthly close.

Analyst: Bitcoin Hits 'Crucial Area'

Data of Cointelegraph Pro Markets and TradingView followed BTC/USD as it continued to lose momentum after local highs near $28,500.

As early week excitement faded, traders and analysts warned that it was now a turning point for the short-term trend.

“A crucial area for Bitcoin is coming up and he dove into it,” Michaël van de Poppe, founder and CEO of trading company Eight, summarized.

“If this zone holds as support and Bitcoin will be able to reclaim $27,500, it all looks like we will continue the uptrend. Drop below $26,600 and we will see new lows."

Trader Skew added that spot buying liquidity had been taken on the largest global exchange Binance, and a reversal is now required to avoid a retest of the 200-week moving average (MA).

this had it worked as previous support, sitting just above $26,000.

$BTC Binance Point
and full walls now lol

strength is what you want to see now, otherwise go straight back to 200W MA https://t.co/u930TJ1E9V pic.twitter.com/D2XsU6mrk8

— Skew Δ (@52kskew) May 31, 2023

Skew further noted that BTC/USD was testing several exponential MAs on the day in a “quite strong” performance.

Continuing from the Binance order book, monitoring the Resource Material Indicators had some predictions for how the monthly close might play out.

“For the most part, the Bitcoin liquidity changes on the order book have been quite subtle today, but zooming out a bit further we can see that the $31k-$32k range demand liquid is falling closer to the active trading zone while supply liquidity has been reduced and then adjusted slightly”, said Twitter followers.

“The consolidation of liquidity in the range should cushion the volatility ahead of the monthly close. The biggest concern for bulls is that the liquidity of the offers is shrinking.”

Liquidity ready to fuel the Bitcoin fire

Offering some hope should it return to the upside, meanwhile, popular analyst Philip Swift noted that liquidity was lurking above $30,000.

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Swift, creator of on-chain analysis site LookIntoBitcoin and co-founder of trading suite Decentrader, suggested that any breakout could gain "momentum" and potentially head for $35,000.

“*IF* Bitcoin can get as high as $31k (would have to break weekly resistance @ $30k) there is plenty of liquidity between $31k - $35k that could add some momentum to the move,” he said. commented.

An accompanying chart showed Decentrader's Liquidity Map tool.

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