Bitcoin’s recent spike above $28,000 has started to fade as the new week begins, with the cryptocurrency eroding 4% gains as downside targets stretch to $23,000. The BTC price traded near $27,846 on May 28, but traders are still wary of a full correction of the weekend upside. With U.S. markets closed for the Memorial Day holiday, crypto markets were quieter as traders awaited a Congressional vote on the proposed deal to extend the U.S. debt ceiling. Despite this, some analysts and traders remain unconvinced that bulls have the upper hand.
Popular trader Crypto Tony uploaded a potential BTC price roadmap to Twitter, calling a move back to as low as $23,000 “still very much a possibility.” He advised followers that if Bitcoin closes below $27,500, he would close his long positions and look for short positions. Trading suite Decenter also noted that short positions were increasing, even though May 28 saw more positions liquidated than any day in a month.
On the other hand, on-chain monitoring resource Material Indicators warned against dismissing the recent uptick as a fakeout. The bounce came from key technical support, including the 200-week moving average still acting as support, with several support points near $26,000 on traders’ radar.
Despite the Wall Street holiday, the U.S. dollar continued to show strength, which traditionally spelled significant headwinds for crypto asset performance. However, Bitcoin seemed to brush off the rise in the U.S. dollar index which reached its highest point since mid-March. Crypto Tony pointed out that he expects resistance for the dollar at the $105.80 mark and anticipated a strong dollar over the next few months, but for it to roll over into next year.
The current market situation presents a complex picture for Bitcoin traders and enthusiasts, leaving room for various interpretations of the cryptocurrency’s future movements. While some experts lean towards a bearish outlook of a further drop in price, others maintain that the market shows legitimate signs of recovery and growth. Only time will tell which of these scenarios will unfold, but one thing is certain – the debate continues as the crypto market navigates its ever-changing landscape.
Source: Cointelegraph
