Bitcoin (BTC) managed to hold onto its recent gains on May 27 as traders called for a change in “bearish” market sentiment. The price of BTC/USD entered the weekend at approximately $26,700. Despite the recent macroeconomic data from the United States, which showed the economy weathering tighter financial conditions better than expected, the mood remained cautious for some.
Mixed reactions from traders
Founder and CEO of trading firm Eight, Michaël van de Poppe, argued that “Retail is so extremely bearish on Bitcoin and Crypto, it’s almost insane.” Popular trader Skew noted Bitcoin’s strong reaction at the 200-week moving average (MA) near $26,000, with more key trend line challenges now in the making. Analysis of the 4-hour BTC/USD chart stated that “Expecting a pretty major move soon, inflection point is here imo.” Additional insights concluded that “froth” had cleared from exchanges, along with over $300 million of open interest on the largest-volume exchange, Binance.
Predictions of big moves coming
Checkmate, lead on-chain analyst at Glassnode, predicted “big moves coming.” A subsequent overview of some key on-chain metrics presented BTC/USD at a “decision point.” Fellow trader and analyst Rekt Capital stated that additional strength was still needed to flip the trajectory in the bulls’ favor. He referred to a chart of 1-day timeframes, which also showed the bearish head-and-shoulders pattern, something Rekt Capital previously warned could result in a longer-term bearish phase, including a trip toward $20,000.
Overall cautious sentiment
Despite the recent rebound in the price of BTC, the overall sentiment remains cautious for some traders. The mood is influenced by the current macroeconomic data from the United States, which showed a surprise increase in the Personal Consumption Expenditures (PCE) index print. This has led markets to price in a June interest rate hike from the Federal Reserve, which should form a headwind for risk assets but failed to dampen a BTC price rebound. However, some traders believe that additional strength is still needed to shift the trajectory in favor of the bulls.