Bitcoin Lingers at Key $69,000 Price Point Amid Market Liquidity Changes
Summary:
As the week concluded on May 26, Bitcoin (BTC) hovered near the key $69,000 price level. Noted traders discussed the increase in liquidity surrounding this point and the impact of traditional resistance zones, pointing out the parameters of $68.3K & $69.8K to observe leading into the next week. As opinions varied on whether the currency would overcome this resistance or continue to consolidate for several weeks, all agreed on the importance of conducting personal research before making any investment decisions.
As the week of May 26 approaches its conclusion, Bitcoin (BTC) continues to linger near the critical price point of $69,000. Despite increasing to briefly exceed $69,500, the BTC/USD duo were seen consolidating, according to data from Cointelegraph Markets Pro and TradingView. This strong performance occurred despite the headwinds of customary resistance areas that curtailed weekend gains that some market watchers had previously forecasted.
An informed trader known as Daan Crypto Trades hinted at a surging liquidity on both ends of the price spectrum surrounding around ~$69K. As per his recent analytical review, noteworthy price levels to observe in the short term leading into the forthcoming week are $68.3K & $69.8K.
Daan Crypto Trades also shared a chart displaying the liquidity density for the BTC/USDT perpetual exchange pair on Binance, the world's leading cryptocurrency exchange. In contrast, liquidity appears to be growing around the current price on all BTC order books, leading to diminished volatility but increasing the likelihood of a future liquidity onslaught.
Reinforcing the significance of $69,000 as a crucial line of resistance, Keith Alan, co-founder of Material Indicators, highlights the need for that resistance level to be converted into support. He conveyed his hope for a weekly closure above $69K to foster assurance in a systematic surge to $73K. However, he did keep in mind that U.S. markets will be closed for Memorial Day on May 27.
Alternatively, noted trader and analyst Rekt Capital focused on the considerable resistance around $71,000. In his update to subscribers, he stated that Bitcoin had moved out of the risk-prone area typically linked after the April block subsidy split. Despite this positive movement, the market isn't entirely risk-free.
Rekt Capital indicated a Bitcoin rejection at the high resistance level of approximately $71,500. Subsequently, he projected ongoing consolidation in the market and suggested that it might hover between $60,000 and $70,000 for several more weeks.
This consolidation occurring could prompt a red close for May, which aligns with the historical trend observed in the previous three years, according to monitoring tool CoinGlass.
Please note, this content is not intended for investment advice or recommendations. Investment and trading activities come with inherent risks. Readers are advised to conduct thorough research before participating in any market activities.
Published At
5/26/2024 11:56:23 AM
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