Traders: BTC Price Must Retain $26,500
Bitcoin’s price experienced a flash dip to $25,800 on Bitstamp, but it eventually rebounded, according to data from Cointelegraph Markets Pro and TradingView. After the start of the week’s final Wall Street trading session, the pair saw a momentary weakness, dipping briefly below the key 100-day and 200-week moving averages (MAs) before bouncing back. As the weekend began, market participants were split over what might happen next.
Daan Crypto Trades told his Twitter followers, “Nice daily close. Has to hold 26.5K going forward. That’s the line in the sand for me.” Founder and CEO of trading firm Eight, Michaël van de Poppe, agreed that the May 12 daily candle had turned out to be “good.” Analysis before the local lows likewise flagged $26,500 as an important level to reclaim in order to consider long positions.
For fellow trader Crypto Tony, the potential long flip level was higher at $27,300, despite the “nice bounce” overnight. “We are also in the weekend now, so liquidity itself will be far less,” he added in a tweet on the day.
200-Week Trend Line Loss Would “Invalidate” Bull Thesis
Meanwhile, monitoring resource Material Indicators was not optimistic about the state of the Binance order book. A lack of bid liquidity was a significant concern, with the largest cohorts of whales abstaining from the market. “IF there is a bullish case to be made, it’s that price overshooting technical R & S has been the norm in #crypto, and that price is currently back above the 200-Week MA,” part of the analysis after the lows stated. “Perhaps the most neutral thing I could say is that consolidating in this range would be healthy because it would give the market the chance to decide whether it wants to continue distribution or flip to accumulation, and that would add validity and strength to whatever the next move is.”
Material Indicators continued that the 200-week MA remains a key line in the sand when it comes to the bullish thesis going forward. “The bearish case is quite simple,” the analysis read. “If we continue to see a lack of bid liquidity and a lack of buying from the purple and brown whale classes, it will lead to more downside. Any sustained breach back below the 200 WMA invalidates any bullish dream of a breakout.”
Conclusion
The Bitcoin market experienced a brief dip, with traders expressing different opinions about what could happen next. The bulls noted that Bitcoin’s price had to hold $26,500 going forward, while the bears remained skeptical, citing a lack of bid liquidity as a significant concern. Material Indicators noted that Bitcoin consolidating in this range would be healthy, and the market would decide whether it wanted to continue distribution or flip to accumulation.
- Bitcoin’s price experienced a flash dip to $25,800 on Bitstamp but eventually rebounded.
- Daan Crypto Trades told his Twitter followers that Bitcoin’s price had to hold $26,500 going forward.
- Material Indicators noted that Bitcoin consolidating in this range would be healthy.
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