bitcoin (BTC) seemed about to give up $27,000 as support on May 17 with traders waiting for new lows.
Whales meet low liquidity
Data of Cointelegraph Pro Markets and TradingView it showed BTC/USD trading near $26,800 at the time of writing.
The pair had made multiple crosses of the $27,000 mark the day before, that area forming a time-frame focus low now at risk of being broken.
โ3 waves towards resistance, followed by a retest and a rejection outside of the resistance zone,โ popular Crypto trader Tony summarized about recent activity.
He added that a potential target to look forward to now was $26,400.
TraderSZ trading account had previously predicted an โexpansion candleโ to enter should the crash continue.
$BTC daily. It looks like it's breaking. If correct, we should get a large spreading candle to the downside soon. https://t.co/MAV2GY6mKn pic.twitter.com/24GXaMJPXR
โTraderSZ (@trader1sz) May 16, 2023
โLittle long flush early in the morningโ, another popular trader, Daan Crypto Trades, continued.
โOn the Bybit futures chart, we can see how the requests were filled and from there the spot price pushed lower to remove the longs that accumulated in this mini range. Overall still choppy and no clear direction."
Analyzing the order book setup on Binance, monitoring resource material indicators noted a general lack of liquidity.
Higher-volume traders, he revealed, had reduced activity to a minimum as a result, perhaps because the absence of coins exposed them to slippage.
Liquidity on both sides of #Bitcoin the price is so low that whales have to split their market orders into smaller order sizes to minimize slippage or wait for pockets of liquidity before snapping buttons.
I pulled the volume percentile filter down a lot to see how and... pic.twitter.com/dpXddCKgiX
โ Material indicators (@MI_Algos) May 16, 2023
Moving away, however, an accompanying narrative for many remained the concept of โchoppyโ price action continuing.
The current trading range, posing as a key support and resistance zone going into 2021, showed no sign of giving up control.
โOver the next few days, I expect the price action to be between $27.2K and $26.5K,โ Titan of Crypto wrote in one such market assessment.
$25,000 BTC Price Target Compared to Stocks
Although bullish in the long term, the Stockmoney Lizards trading group offered a potential downside target of $25,000 on the day.
Related: Bitcoin trader eyes CME gap with $24K BTC price drop target at stake
Recognizing the โhead and shouldersโ formation that developed during April โ a bearish sign reported in previously, it also listed the 25-week simple moving average (SMA) as a potential support line.
The 25-week SMA stood at just $23,100 on the day, but was bound to rise towards the potential retest in June.
However, a separate post called the general shape of price performance a "well-known" pattern, referencing similar moves in US stocks in years past. These moves ultimately resulted in a breakout to the upside.
is attempting to retest neckline in this well-known chart pattern. pic.twitter.com/e6YtBYBRvt
โ Stockmoney Lizards (@StockmoneyL) May 17, 2023
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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.
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