Bitcoin’s Battle: Reclaiming $27,600 Support or Facing Larger Bearish Breakdown?

Intricate financial battlefield, Bitcoin hovering above $27,600, light and shadows playing on a tightrope, a subtle tension in the air, dusk settling, juxtaposition of bull and bear locked in a strategic duel, uncertainty looming, flicker of hope glimmering in their eyes, cautiously optimistic atmosphere, a touch of chiaroscuro style.

Bitcoin (BTC) is striving to maintain a bullish trend as the new week commences with the market operating within a crucial zone. After concluding the weekly candle at slightly below $27,000, BTC/USD is attempting to establish support while a persistent trading zone holds on.

The stakes are already high — the previous week witnessed a flash dip below $26,000 and two-month lows for Bitcoin, causing traders to fear a more extensive bearish breakdown. Although this hasn’t come to fruition, there are concerns on both shorter and longer timeframes. Is the price action likely to move in a specific direction soon? A relatively calm week of macro triggers implies a reduced likelihood of volatility from external sources. Furthermore, the approaching difficulty adjustment reaching another all-time high might make a strong case for upside continuation.

The weekly close for Bitcoin, around $27,930, offers mixed signals. Despite a reassuring upward move, reaching $27,550 overnight, the aftermath still points to Bitcoin’s weakest performance since mid-March – something popular trader and analyst Rekt Capital pays close attention to. On Twitter, he cautioned that $27,600 is the level to transform into support, noting that failing to do so could enable further downside into the low $20,000s.

However, Rekt Capital is now more optimistic overall, looking past the current correction and its potential target. He maintained that Bitcoin has already broken the downtrend and argued that the mid-to-long-term outlook looks bullish. On weekly timeframes, the crucial trend line that stands out the most is the 200-week moving average (WMA), which, being at $26,200, has already had its first retest.

Other traders, such as Michaël van de Poppe, support the strength of short-timeframe rebound action as the new week commences, stating that BTC/USD is “ready for continuation.” Additionally, Litecoin (LTC) shows what might be ahead, as it traded up over 8% in the previous 24 hours.

Looking at the macroeconomic side, crypto enthusiasts might be disappointed this week, as calm events in the United States are expected. The highlight of the week comes in the form of a speech by Jerome Powell, Chair of the Federal Reserve, on May 19, with 14 Fed officials set to deliver commentary in the coming days, potentially presenting conflicts.

Although the current market situation seems dynamic, Bitcoin’s trajectory appears cautiously optimistic. As long as the primary support level at $27,600 is successfully reclaimed, the digital asset may continue its upward momentum and evade the feared larger bearish breakdown.

Source: Cointelegraph

Sponsored ad