Bitcoin dips 5% to key support in ‘moment of truth’ for crypto market

Bitcoin (BTC) fell sharply after the May 24 Wall Street open as a “long awaited retest” of crucial pattern lines materialized.BTC/ USD 1-hour candle chart on Bitstamp. Source: TradingViewBitcoin deserts uptick to retest moving averagesData from Cointelegraph Markets Pro and TradingView revealed BTC/USD hitting $26,154 on Bitstamp– its most affordable because May 12. The most recent action was a world away from simply the day prior, when upside formed the primary story for the marketplace and Bitcoin was going for $27,500. Rangebound volatility was hence the name of the video game on the day, while traders considered crucial levels for bulls to secure going forward.These was available in the form of the 100-day and 200-week moving averages (MAs), both already a subject of conversation in current weeks.” We are getting a long awaited retest of the 200-Week Moving Average. IMO, this is the MOST crucial level for BTC bulls to hold,” monitoring resource Material Indicators summarized to Twitter followers.BTC/ USD 1-day candle light chart on Bitstamp with 100-day, 200-week MA. Source: TradingViewMichaël van de Poppe, creator and CEO of trading firm Eight, even more kept in mind the 200-week MA and exponential MA coming into play for the overall cryptocurrency market cap.This he referred to as a “decisive moment” for the chart.Total market capitalization for #Crypto is entering into the areas of the 200-Week MA and EMA.Moment of truth is showing up. Breaking below, and some additional damage will exist. pic.twitter.com/g1HW05Pmgb— Michaël van de Poppe (@CryptoMichNL) May 24, 2023

Rangebound volatility was therefore the name of the game on the day, while traders considered essential levels for bulls to safeguard going forward.These came in the form of the 100-day and 200-week moving averages (MAs), both already a subject of conversation in recent weeks. IMO, this is the MOST important level for BTC bulls to hold,” keeping an eye on resource Material Indicators summarized to Twitter followers.BTC/ USD 1-day candle chart on Bitstamp with 100-day, 200-week MA. Source: TradingViewMichaël van de Poppe, creator and CEO of trading company Eight, further noted the 200-week MA and exponential MA coming into play for the total cryptocurrency market cap.This he explained as a “moment of reality” for the chart.Total market capitalization for #Crypto is getting into the locations of the 200-Week MA and EMA.Moment of truth is coming up.

Popular trader Daan Crypto Trades on the other hand eyed long positions returning to the market at the lows, just hours after the drawback began. Longs “buying the dip” had actually been a particular feature of current local lows.”Bybit Open Interest already practically back to where it was before this long capture. Appears like quite a great deal of longs instantly re-entering,” he commented.Debt ceiling issues mountUnited States equities also lost at the open, amid concerns over markets reaction to the Biden administrations financial obligation ceiling stalemate.Related: $160K at next halving? Design counts down to brand-new Bitcoin all-time highFor trading platform QCP Capital, now was the time for caution for Bitcoin bulls.BTC/ USD “holding up”– acting in a tight range– despite the uncertainty increased the chances of a catch-up correction, it warned in a market upgrade on the day. The ultimate result, however, would depend on the resolution of the debt ceiling issue.”Although our medium-term predisposition is for greater BTC, on an offer scenario– we think BTC could rapidly sync back with what other macro markets are implying,” it summarized. “On a no-deal situation however, we will easily take out the years highs.”S&P 500 (SPX) 1-hour candle chart. Source: TradingViewMagazine: Moral responsibility: Can blockchain actually enhance rely on AI?This article does not include investment guidance or recommendations. Every financial investment and trading relocation involves risk, and readers should conduct their own research when making a choice.