Bitcoin (BTC) holds its gains into May 27, as traders are calling for a change in the prevailing bearish market sentiment. The price of BTC, which currently hovers around $26,700, has managed to protect the 200-week moving average (MA) trend line. This comes despite the fact that macroeconomic data from the United States ended with an unexpected positive outcome, causing markets to price a possible June interest rate hike from the Federal Reserve.
However, not all market participants share this enthusiasm, with some taking a more cautious stance. Michaël van de Poppe, founder and CEO of trading firm Eight, argued that retail investors are extremely bearish on Bitcoin and crypto, possibly being stuck in the 2022 mindset.
Notable trader Skew also took note of Bitcoin’s strong performance at the 200-week MA near $26,000, with more key trend line challenges now emerging. Skew stated that the price is currently pinned between the 4-hour expontential moving averages (EMAs) and 1-day EMAs, expecting a significant price move soon as the inflection point is here in their opinion.
Further insights show that “froth” has cleared from exchanges, along with over $300 million of open interest on the largest-volume exchange Binance. Skew is not the only well-known voice calling for a pronounced shift in BTC price behavior. This week, Checkmate, a lead on-chain analyst at Glassnode, predicted that there are “big moves coming.”
However, additional strength is still needed to change the trajectory in the bulls’ favor, according to trader and analyst Rekt Capital. Rekt Capital also pointed out the bearish head and shoulders pattern, something that could potentially result in a longer-term bearish phase — including a possible drop toward the $20,000 mark.
While some stick to their cautious stance, others are looking for the BTC price to make a significant move soon. Yet, it remains to be seen which direction it will take. Industry players, as well as traders and investors, will be watching the market closely as it unfolds.
Source: Cointelegraph
