Bitcoin to face ‘another test’ of 200-week trend line, says analyst.

Bitcoin (BTC) has dropped to multi-day lows on June 5 as exchanges see increased activity.

Van de Poppe: Trend line failure could mean “bottom isn’t in yet”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $26,640 on Bitstamp.

The pair looked weak as it was down nearly 3% versus the weekend’s highs and key support lines were inching closer.

Among these support lines was the 200-week moving average (MA), which had acted as support since mid-March and was now at $26,400.

Keith Alan, co-founder of monitoring resource Material Indicators, warned in commentary on the weekly chart that “Bitcoin is going to get another retest of support at the 200-Week MA (purple). IMO, a Weekly candle close below the 200-Week MA would be an indication that the bottom isn’t in yet. Things could get spicy this week. The last line of defense is at the 50-Month MA around $25.5k.”

“IMO, a Weekly candle close below the 200-Week MA would be an indication that the bottom isn’t in yet. Things could get spicy this week. The last line of defense is at the 50-Month MA around $25.5k.”

Others also saw similar areas for bulls’ last stand to take place.

Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on the day that “Bitcoin is, still, stuck in the range-bound area where $26,600 is the important area to hold.”

“Couldn’t break $27,500. The standard Sunday/Monday dump took place, let’s see what the week will bring going forward. Pretty relaxed macro-economic week too.”

Material Indicators itself uploaded a chart of liquidity on largest global exchange Binance and argued that the United States Federal Reserve decision on interest rates due June 14 would be the ultimate “do or die” moment.

“If Technical Support levels at the key Moving Averages is lost, the next level of support would be around the 2017 Top, which has confluence with the trend line,” it wrote.

“BTC liquidity remains thin on both sides of price. Markets await the June 14th FED rate hike decision.”

Exchange speculation heats up

Trader Daan Crypto Trades noted increased activity in futures markets where open interest was increasing.

Related: ‘$31K was not the end’ — 5 things to know in Bitcoin this week

Action going on over at the Binance $BTC Futures pair. Seeing some big walls towards both sides. Some of them getting filled while some are likely spoof orders. Meanwhile, Open Interest is going up and fundingg is going down. pic.twitter.com/Rq3vQDuNJo

— Daan Crypto Trades (@DaanCrypto) June 5, 2023

Trading suite Decentrader likewise noted a “significant increase” in open interest, with long positions becoming more prominent before the Wall Street open.

This seems to mostly be coming from #Bitcoin Longs as we are seeing an increase in both Funding Rates and the Long/Short ratio. https://t.co/I48kl4kbGW pic.twitter.com/pDf57zs2W4

— Decentrader (@decentrader) June 5, 2023

Monitoring resource CoinGlass showed that liquidations were mostly impacting longs on June 5, with cross-crypto position losses totaling $33 million at the time of writing.

Magazine: Home loans using cryptocurrency as collateral: Do the risks outweigh the reward?

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