Bitcoin (BTC) has been trading below $28,000 on May 9 as traders awaited macroeconomic data releases. BTC/USD was seen hovering around $27,700 at the day’s Wall Street open, according to data from Cointelegraph Markets Pro and TradingView. The pair had seen deeper losses the day prior, with a tap of $27,300 so far marking the local bottom. Traders hoped that May 10 would provide some much-needed volatility in the form of the United States Consumer Price Index (CPI) print for April.
Some traders were optimistic about the potential for a recovery in BTC prices. Michaël van de Poppe, founder and CEO of trading firm Eight, tweeted that he expected a “sweep lower again, and then we’re ready to long your longs in anticipation of CPI.” Van de Poppe added that a bullish divergence in transaction volume was also needed to sustain a recovery. However, others were decidedly less optimistic, with popular trading resource Game of Trades predicting bearish moves to come. The platform suggested that Bitcoin was likely setting up for more downside, citing excess optimism, a head and shoulders pattern, and bearish momentum. “A confirmed breakdown will have an implied target near the $24k region,” it added the day prior.
In part of his own analysis adopting a similar position, fellow trader Crypto Tony continued to warn of more downside to come. “Once we lose $27,000 then things should start escalating from here,” he argued. “$25,200–$24,200 are my main targets for now and where I will shed some profit.” Eyeing its own targets, on-chain analytics platform CryptoQuant suggested realized price clusters as potential support. In one of its Quicktake blog posts on May 10, contributor Abramchart flagged the area around $25,600 as the one to watch. This came through the use of the UTXO Age Bands metric, which measures the price at which various cohorts of BTC last moved. “The closest support area is at 25619, which represents the average purchase price of wallets that bought Bitcoin within the last 3-6 months,” Abramchart summarized.
It is worth noting that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.