Watch these BTC price levels as Bitcoin threatens to lose $27K support
Bitcoin (BTC) looked poised to give up $27,000 as assistance on May 17 with traders lying in wait for new lows.BTC/ USD 1-hour candle light chart on Bitstamp. Source: TradingViewWhales fulfill low liquidityData from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near $26,800 at the time of writing.The set had staged several crosses of the $27,000 mark the day prior, that area forming a low-timeframe focus now at risk of breaking down.BTC/ USD annotated chart. Source: Crypto Tony/ Twitter” 3 wave up into resistance, followed by a retest and a rejection off resistance zone,” popular trader Crypto Tony summarized about current activity.” For the next few days I expect rate action to be choppy in between $27.2 k – $26.5 k,” Titan of Crypto wrote in one such market appraisal.BTC/ USD annotated chart.
Bitcoin (BTC) looked poised to give up $27,000 as assistance on May 17 with traders lying in wait for new lows.BTC/ USD 1-hour candle light chart on Bitstamp. Source: TradingViewWhales satisfy low liquidityData from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near $26,800 at the time of writing.The set had staged several crosses of the $27,000 mark the day prior, that area forming a low-timeframe focus now at risk of breaking down.BTC/ USD annotated chart. Source: Crypto Tony/ Twitter” 3 wave up into resistance, followed by a retest and a rejection off resistance zone,” popular trader Crypto Tony summed up about current activity.
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Zooming out, however, an accompanying narrative for lots of remained the principle of “choppy” price action continuing.The present trading variety, including as an essential assistance and resistance zone from 2021 onward, revealed no indications of relinquishing control.” For the next couple of days I anticipate cost action to be choppy in between $27.2 k – $26.5 k,” Titan of Crypto composed in one such market appraisal.BTC/ USD annotated chart. #Bitcoin is trying to retest the neckline in this popular chart pattern.
” Small long flush early in the morning,” another popular trader, Daan Crypto Trades, continued. “On the Bybit futures chart we can see how asks were filled and from there on out spot pressed rate to secure the longs that built up in this tiny variety. In general still choppy and no clear instructions.” Analyzing order book setup on Binance, keeping track of resource Material Indicators noted a general lack of liquidity.The largest-volume traders, it revealed, had actually reduced activity to a minimum as an outcome, perhaps due to that lack of coins exposing them to prospective slippage.Liquidity on both sides of #Bitcoin price is so thin that whales need to either break up their market orders into smaller sized order sizes to lessen slippage or await pockets of liquidity prior to smashing buttons. Cranked the Volume Percentile filter way down to see how and … pic.twitter.com/dpXddCKgiX— Material Indicators (@MI_Algos) May 16, 2023
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Other Questions People Ask
What are the key BTC price levels to watch as Bitcoin threatens to lose $27K support?
As Bitcoin approaches the critical $27,000 support level, traders should closely monitor the range between $27.2K and $26.5K. This area has been identified as a significant resistance and support zone, with potential for choppy price action in the coming days. Observing these levels can help traders make informed decisions about their positions as market volatility continues.
How does low liquidity affect Bitcoin's price as it threatens to lose $27K support?
Low liquidity in the Bitcoin market can lead to increased volatility, especially as BTC approaches the $27K support level. With whales reducing their trading activity, the lack of liquidity may cause significant price swings and slippage for traders. Monitoring order book setups can provide insights into potential price movements and help traders navigate this challenging environment.
What trading strategies should be considered while Bitcoin threatens to lose $27K support?
Traders should consider adopting a cautious approach while Bitcoin hovers around the $27K support level. Strategies such as setting stop-loss orders just below key support levels can help mitigate risks during potential breakdowns. Additionally, keeping an eye on market sentiment and liquidity conditions can provide valuable context for making timely trading decisions.
Why is the $27K level significant for Bitcoin as it threatens to break down?
The $27K level is significant for Bitcoin as it has historically served as both a support and resistance zone. A breakdown below this level could trigger further selling pressure and potentially lead to new lows, as traders are already positioned for choppy price action. Understanding the implications of this level can help investors gauge market sentiment and adjust their strategies accordingly.
What insights do traders have about Bitcoin's price action near the $27K support level?
Traders like Crypto Tony and Titan of Crypto have noted that Bitcoin's price action is expected to remain choppy between $27.2K and $26.5K. This indicates a lack of clear direction, with potential for both upward and downward movements. Keeping track of these insights can help traders anticipate market shifts and make more informed trading choices as Bitcoin navigates this critical support level.