Bitcoin price will get ‘another test’ of 200-week trend line — analyst

Bitcoin (BTC) fell to multi-day lows at the June 5 Wall Street open as action warmed up on exchanges.BTC/ USD 1-hour candle chart on Bitstamp. Source: TradingViewVan de Poppe: Trend line failure might indicate “bottom isnt in yet” Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD wicking to $26,640 on Bitstamp.Down nearly 3% versus the weekends highs, the set looked weak as essential support lines inched closer.Among these was the 200-week moving average (MA), now at $26,400, which had actually weathered repeated tests to stay as support because mid-March.” Bitcoin is going to get another retest of assistance at the 200-Week MA (purple),” Keith Alan, co-founder of monitoring resource Material Indicators, cautioned in commentary on the weekly chart. “IMO, a Weekly candle close below the 200-Week MA would be a sign that the bottom isnt in. Things might get spicy this week. The last line of defense is at the 50-Month MA around $25.5 k.” BTC/USD annotated chart. Source: Keith Alan/TwitterOthers considered comparable locations for bulls last stand to happen.” Bitcoin is, still, stuck in the range-bound location where $26,600 is the crucial area to hold,” Michaël van de Poppe, founder and CEO of trading company Eight, informed Twitter fans on the day.” Couldnt break $27,500. The standard Sunday/Monday dump took location, lets see what the week will bring moving forward. Pretty unwinded macro-economic week too.” Material Indicators itself, on the other hand, uploaded a chart of liquidity on largest global exchange Binance.BTC/ USD order book information for Binance. Source: Material Indicators/TwitterCommenting on Alans findings, it argued that the United States Federal Reserve choice on rates of interest due June 14 would be the supreme “do or die” moment.” If Technical Support levels at the key Moving Averages is lost, the next level of assistance would be around the 2017 Top, which has confluence with the trend line,” it wrote. “BTC liquidity stays thin on both sides of cost. Markets wait for the June 14th FED rate trek decision.” Exchange speculation heats up upTrader Daan Crypto Trades was among those who noted sounds coming from futures markets, where open interest was increasing.Related: $ 31K was not completion– 5 things to know in Bitcoin this weekAction going on over at the Binance $BTC Futures pair.Seeing some huge walls towards both sides. A few of them getting filled while some are most likely spoof orders.Meanwhile, Open Interest is going up and fundingg is decreasing. pic.twitter.com/Rq3vQDuNJo— Daan Crypto Trades (@DaanCrypto) June 5, 2023

Data from monitoring resource CoinGlass, meanwhile, showed liquidations more impacting longs for June 5, with cross-crypto position losses totaling $33 million at the time of writing.Crypto liquidations chart. Source: CoinGlassMagazine: Home loans using crypto as security: Do the threats surpass the reward?This short article does not consist of financial investment recommendations or recommendations. Every financial investment and trading relocation includes threat, and readers need to conduct their own research study when deciding.

Source: TradingViewVan de Poppe: Trend line failure might imply “bottom isnt in yet” Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $26,640 on Bitstamp.Down almost 3% versus the weekends highs, the pair looked weak as key assistance lines inched closer.Among these was the 200-week moving average (MA), now at $26,400, which had weathered duplicated tests to stay as assistance since mid-March.” Bitcoin is going to get another retest of assistance at the 200-Week MA (purple),” Keith Alan, co-founder of keeping track of resource Material Indicators, warned in commentary on the weekly chart.” If Technical Support levels at the key Moving Averages is lost, the next level of support would be around the 2017 Top, which has confluence with the trend line,” it wrote. Some of them getting filled while some are most likely spoof orders.Meanwhile, Open Interest is going up and fundingg is going down.

Trading suite DecenTrader likewise noted a “considerable boost” in open interest, with long positions ending up being more popular before the Wall Street open.This seems to primarily be coming from #Bitcoin Longs as we are seeing an increase in both Funding Rates and the Long/Short ratio. https://t.co/I48kl4kbGW pic.twitter.com/pDf57zs2W4— Decentrader (@decentrader) June 5, 2023

Other Questions People Ask

What does the analyst say about the Bitcoin price testing the 200-week trend line?

The analyst Keith Alan suggests that Bitcoin is likely to retest the 200-week moving average (MA), which currently stands at $26,400. He warns that a weekly candle close below this level could indicate that the market has not yet reached its bottom. This retest is crucial as it serves as a significant support level that has held since mid-March.

How might the upcoming Federal Reserve decision impact Bitcoin's price near the 200-week trend line?

The upcoming Federal Reserve decision on interest rates, scheduled for June 14, is expected to be a pivotal moment for Bitcoin's price action. Analysts believe that if Bitcoin loses technical support at the 200-week MA, the next significant support level could align with the 2017 peak. This scenario could lead to increased volatility in the market as traders react to the Fed's decision.

What are the implications of Bitcoin's price being stuck around $26,600?

Being stuck around $26,600 indicates that Bitcoin is in a range-bound area, which is critical for bulls to maintain momentum. Analysts like Michaël van de Poppe emphasize that failing to break above $27,500 could lead to further downward pressure. If Bitcoin cannot hold this level, it may trigger a retest of the 200-week trend line, raising concerns about market stability.

What does increasing open interest in Bitcoin futures suggest about market sentiment?

The increase in open interest for Bitcoin futures suggests that traders are becoming more active and possibly more bullish on Bitcoin's price movement. This uptick in open interest, particularly in long positions, indicates that traders are positioning themselves for potential upward movement. However, with funding rates also rising, it’s essential for traders to monitor how this sentiment plays out in relation to the critical support levels like the 200-week MA.

Why is the 200-week moving average considered a crucial support level for Bitcoin?

The 200-week moving average is viewed as a crucial support level because it has historically provided a strong foundation for Bitcoin's price during downturns. Since mid-March, this trend line has successfully withstood multiple tests, reinforcing its significance. A breach below this level could signal a shift in market dynamics and potentially indicate that Bitcoin's price has not yet found its bottom.