Bitcoin traders are closely watching support levels, as order book data raises concerns about the market’s future. After experiencing a “scam wick,” which led to a two-month low of $25,800 on Bitstamp, the Bitcoin (BTC) is attempting to surpass the $27,000 mark on May 13.
The BTC/USD pair experienced a moment of weakness at the beginning of the week’s final Wall Street trading session, briefly dropping below the critical 100-day and 200-week moving averages (MAs) before bouncing back.
As the weekend kicked off, traders were divided over the likely trajectory in the coming days. Daan Crypto Trades emphasized the importance of holding the $26,500 level, considering it as the crucial line in the sand. Michaël van de Poppe, founder and CEO of trading firm Eight, also agreed that the May 12 daily candle turned out to be “good.”
Prior analysis identified the $26,500 level as a critical milestone to reclaim for considering long positions. However, Crypto Tony, another trader, believed that the potential long flip level was higher at $27,300, despite the overnight “nice bounce.”
The Binance order book’s state, along with Material Indicators, expressed skepticism. A major issue was the lack of bid liquidity, with the largest groups of whales staying away from the market.
If a bullish case were to be made, analysts argue that price overshooting technical resistance and support has been a common occurrence in the cryptocurrency market. The market consolidating within the current range could be seen as healthy, allowing for a potential shift from distribution to accumulation.
The 200-week MA stands as a crucial factor for the bullish thesis moving forward. If there continues to be a lack of bid liquidity and buying from the purple and brown whale classes, it could lead to further downside. Any sustained breach below the 200-week MA would invalidate any bullish expectations of a breakout.
Despite lingering concerns, it is important to remember that every investment and trading move carries risk. Readers should always conduct their own research before making any decision in the cryptocurrency market.
Source: Cointelegraph
