Bitcoin (BTC) witnessed a lackluster end to May as it slid below $27,000. The monthly close delivered disappointment for the cryptocurrency market, and the pair erased its entire uptick seen over the weekend, coming full circle to act in a familiar range on the day. The area immediately below $27,000 has been a key focal point for Bitcoin since the middle of April. BTC/USD, however, “filled” a gap in CME futures outstanding since the weekend trip higher. Popular trader Jelle wrote on social media that when these gaps fill, the bottom is usually near.
Bitcoin’s Future Price Action
Fellow trader Daan Crypto Trades remained risk-off until a clearer direction became apparent. Trader Skew likewise got few positive cues from order book composition and trader activity. They summarized that the gap had been filled, but the market remained weak. To be bullish would be strength above $27.4K & $27.2K (index exchanges). Despite the gap fill, Bitcoin’s price finished May down 7%. Data from monitoring resource CoinGlass shows that Bitcoin is currently 5.5% lower in Q2, contrasting Q1 gains of over 70%.
Analyzing multiple timeframes, the trading suite DecenTrader saw little reason to expect an abrupt trend change yet. Warning of “moderately bearish” or “declining” signals on its proprietary trading instruments, it flagged downside support levels tied to key moving averages (MAs). These MAs are $26,250, $26,000, and $23,035 for the 200-week, 20-week, and 200-day MAs, respectively. Bitcoin is still straddling liquidity-wise, and the downside is currently protected by the 200WMA. Upside, all meaningful liquidity is above $30k.
An additional post argued that Bitcoin’s price action would soon break out to $30,000, completing a “falling wedge” construction with waning volatility. It is essential to note that the cryptocurrency market is highly unpredictable, and no one can predict the exact future price action of Bitcoin.