On June 5, Bitcoin (BTC) experienced a decline to multi-day lows as trading on exchanges intensified. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD wicking fell to $26,640 on Bitstamp. The pair looked weak, down almost 3% from the weekend’s highs, as key support lines moved closer. Among these was the 200-week moving average (MA), which has remained as support since mid-March and now stands at $26,400. Keith Alan, co-founder of monitoring resource Material Indicators, warned in his weekly chart commentary that “Bitcoin is going to get another retest of support at the 200-Week MA (purple).” He also stated that if the Weekly candle closes below the 200-Week MA, it could indicate that the bottom isn’t in yet.
Analysts Predict Bulls’ Last Stand
Van de Poppe, founder, and CEO of trading firm Eight, agreed with Alan’s predictions, saying that Bitcoin is still stuck in the range-bound area, which makes $26,600 the essential area to hold. He noted that the standard Sunday/Monday dump took place, and we must wait to see what the week will bring going forward. Michaël van de Poppe saw similar areas for the bulls’ last stand to take place. Others suggested that the last line of defense is at the 50-Month MA around $25.5k.
Markets Await the June 14th FED Rate Hike Decision
Material Indicators uploaded a chart of liquidity on the largest global exchange, Binance. It argued that the United States Federal Reserve’s decision on interest rates due on June 14 would be the ultimate “do or die” moment, commenting on Alan’s findings. It wrote, “If Technical Support levels at the key Moving Averages are lost, the next level of support would be around the 2017 Top, which has confluence with the trend line.” Daan Crypto Trades noted noises from futures markets, where open interest was increasing and Trading suite DecenTrader noted a “significant increase” in open interest, with long positions becoming more prominent before the Wall Street opening. Data from monitoring resource CoinGlass showed that liquidations were more impacting longs for June 5, with losses totaling $33 million at the time of writing.
Bitcoin is facing a crucial time as it falls to multi-day lows and approaches key support levels. Analysts predict that the bulls’ last stand could take place around the 50-Month MA or the 200-week moving average, which has remained as support for BTC since mid-March. Additionally, the United States Federal Reserve’s decision on interest rates due on June 14 could be the ultimate “do or die” moment for Bitcoin. The market is eagerly anticipating the decision while monitoring the increasing open interest in futures markets and the impact of liquidations on longs.