Bitcoin’s Price Plummets to $27K: Experts Warn of Impending Lows at Monthly Close!

"Bitcoin Struggles to Hold Strong as it Approaches Crucial Area, Testing $27,000 on the Last Day of May"

Bitcoin (BTC) has experienced a lackluster performance on the last day of May, with the 200-week moving average looming in the distance. The cryptocurrency tested $27,000 on May 31, as weakness prevailed into the monthly close. BTC/USD lost momentum after local highs near $28,500, leaving traders and analysts to warn that this is a make-or-break point for the short-term trend. Michaël van de Poppe, founder and CEO of trading firm Eight, summarized, “Crucial area approaching here for Bitcoin and dipped into it. If this zone sustains as support & Bitcoin will be able to reclaim $27,500, everything looks like we’ll continue the upwards trend. Drop beneath $26,600 and we’ll see new lows.”

Trader Skew added that spot buy liquidity on the largest global exchange, Binance, had been taken, with a reversal now required to avoid a retest of the 200-week moving average (MA), which had functioned as earlier support at just above $26,000. Skew further commented that BTC/USD was testing several exponential MAs on the day in a “pretty important” performance. Monitoring resource Material Indicators had some predictions for how the monthly close could play out. “For the most part, Bitcoin liquidity changes in the order book have been pretty subtle today, but by zooming out a little wider we can see ask liquid from the $31k – $32k range is dropping in closer to the active trading zone while bid liquidity has been laddered down, then adjusted slightly,” it told Twitter followers. “Liquidity consolidating into the range should dampen volatility heading into the monthly close. The bigger concern for bulls is that bid liquidity is thinning out.”

Despite the lackluster performance, there is hope in the event of an upside return. Popular analyst Philip Swift noted liquidity lying in wait above $30,000. Swift, creator of on-chain analytics site LookIntoBitcoin and co-founder of trading suite DecenTrader, suggested that any breakout could gain “momentum” and potentially head to $35,000. “*IF* Bitcoin can get up to $31k (it would have to overcome weekly resistance @$30k) there is a big amount of liquidity between $31k – $35k which could add some momentum to the move,” he commented.

It is important to note 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.

Martin Reid

Martin Reid

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