Bitcoin Price Relates to Key Support Levels to Avoid ‘Cascade Fall’

Bitcoin Price Relates to Key Support Levels to Avoid 'Cascade Fall'

Bitcoin (BTC) held up to $ 29,000 when Wall Street opened on May 27 as critical support levels were within a few hundred dollars of the spot price.

1 / day BTC / USD (Bitstamp) candle chart. Source: Trade View

Traders demand a higher level above $ 28,000

Data from Cointelegraph Markets Pro and TradingView confirmed that volatility has declined again in a frustrating week.

The BTC / USD pair was in a narrow range on the day, and for Cointelegraph participant Michaël van de Poppe, it would not take much of a gap to disrupt the status quo.

Technically, when it comes to Bitcoin, you obviously want to see a higher minimum here, and if that happens, we can continue to see. he said in his latest YouTube update.

The levels to be maintained were now close – $ 28,600 and $ 28,200 to avoid a $ 28,000 low reversal of the week and the risk of building a higher minimum.

If we miss this chance, we expect to get closer to $ 26,000, because then we will start to go even lower. “, he said.

Commentator Bob Loukas was equally wary of looking at the Bollinger Bands volatility indicator throughout the day to warn of potential future disruption.

$ BTC – Weak and does not look good, no hurry, with that underlying trend. We should have seen a rally at least early in the cycle, after a sell out. Stay safe. – Bob Loukas (@BobLoukas) May 27, 2022

On social media, the feeling of movement is giving up to come for a prevailing cryptocurrency, which has already characterized sentiment over the past few weeks.

Prefer a lucrative bear offer

At the same time, the review of the network as a whole has fostered fears that current prices may not continue.

See also: Bitcoin whales could prevent BTC price from ‘capitalizing’ – analysis

Analyzing the percentage of profitable supply, Kripto Mevsimi, an analyst who contributes to the CryptoQuant chain analysis platform, drew bearish conclusions.

At present, about 55% of the supply is in profit, he explained, and relative to historical transportation, more price reductions would be needed to enter to give some guarantee for macro-floor.

However, the BTC / USD pair should initially have a sideline period before the final fall. This would be in line with the current price performance with the 2018 bear market and the March 2020 crash.

Forward; 2-3 months of annoying price action. Then the final capitalization is possible with an additional price drop of 30 to 50% “, He sums up.

An accompanying chart compares the three steps starting with a 2017 high of $ 20,000.

Annotated chart of bitcoin’s profitable supply against BTC / USD. Source: CryptoQuant

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of All investment and business transactions involve risk. You should do your own research before making a decision.

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