A key BTC price support is returning to the picture as Bitcoin bulls struggle below $26,000. The leading crypto has yet to see the bottom, according to a popular analyst. On the other hand, an on-chain analyst talks about a possible upside boom for Bitcoin this month.
Van de Poppe: Bitcoin bottom not yet seen’
As you follow on Kriptokoin.com, Bitcoin has dropped to $ 25,829. It’s down about 5% compared to the weekend’s highs. So, Bitcoin looked pretty weak as key support lines approached. Among them was the 200-week moving average (MA), which has survived repeated tests to stay as support since mid-March and is currently at $26,400.
“Bitcoin will test another support at the 200-Week MA (purple),” Keith Alan, co-founder of monitoring resource Material Indicators warned in his comment on the weekly chart. In this context, the analyst said, “IMO, a Weekly candle close below the 200-Week MA is an indication that the bottom has not yet arrived. Things may get hot this week. The last line of defense is around $25.5k at the 50-Month MA.”
BTC snapshot / Source: Keith Alan/ TwitterOthers are eyeing similar areas for the bulls’ final resistance. “Bitcoin is still stuck in the range bound region where $26,600 is the key area to hold,” Michaël van de Poppe, founder and CEO of trading firm Eight, said in a statement during the day.
The analyst also said, “It failed to break $27,500. Standard Sunday/Monday breakdown has occurred. Let’s see what the week brings forward. We had a very comfortable week in terms of macro-economics as well,” he comments.
The “live or die” moment
Meanwhile, Material Indicators shared a liquidity chart of the largest global exchange, Binance.
BTC order book data for Binance / Source: Material IndicatorsAccording to Alan’s findings, the Fed’s rate decision to be announced on June 14 will be the final “live or die” moment. In this context, the analyst said, “If the Technical Support levels in the Key Moving Averages are lost, the next level of support will be around the 2017 High merging with the trendline. BTC liquidity remains weak on both sides of the price. Markets await the June 14 Fed rate hike decision,” he wrote.
Stock market speculation heats up
Trader Daan Crypto Trades was among those who took note of the voices coming from the futures markets where open interest is rising.
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 platform Decentrader has similarly recorded a “significant increase” in open interest, with longs becoming more prominent before Wall Street opens.
This seems to mostly be coming from #Bitcoin Longs as we are seeing an increase in both Funding Rates and the Long/Short ratio. https://t.co/I48kl4kbGW pic.twitter.com/pDf57zs2W4
— Decentrader (@decentrader) June 5, 2023
Data from monitoring resource CoinGlass, meanwhile, showed that liquidations on June 5 more impacted long positions, with cross crypto position losses totaling $33 million at the time of writing.
Crypto liquidation chart / Source: CoinGlassBitcoin is ready to rise in June if the signal materializes!
Willy Woo, a widely followed on-chain analyst, talks about a positive signal for Bitcoin. He says this signal signals a possible upside breakout for Bitcoin this month. The analyst notes that Bitcoin’s cost-based analysis points to an impending rally for BTC in June. In this context, the analyst makes the following statement:
Cost-based analysis shows that the upside looks better than the downside. Summer months are generally flat or bearish. However, every June in the re-accumulation phase has shown an increase. We are in such a window. There is a window for BTC to rise in June. My estimation is a week before this opportunity arises. We’ll look and see.
Source: Willy Woo/TwitterAccording to Glassnode founders, shorting BTC is desperation!
Meanwhile, Glassnode founders Jan Happel and Yann Allemann say those currently trying to short BTC are “desperate” and better spend their time focusing on artificial intelligence (AI) and liquid staking derivative (LSD) altcoins. They explain their views on this matter as follows:
Looking for more reasons to short BTC is a sign of desperation. Better to spend time focusing on AI and LSD focused altcoins.
In a Swissblock post, Alleman and Happel say they expect BTC to rise to the $30,000 price tag after staying in the previously estimated $26,000 to $27,500 range. Accordingly, they comment:
Amid multiple potential catalysts such as the US debt ceiling breaking and key data releases, Bitcoin has successfully held in the predicted range. Right now we find ourselves wandering in ascension territory again. Market sentiment favors optimism and risk perception has declined. However, we still expect an increase in market participation and momentum to push us towards the $30,000 target.
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