• Bitcoin (BTC) failed to hold above the $27,500 level, suggesting that the gates to a downside to $23,000 are still open.
• Short-term holders of Bitcoin have been selling at a profit as evidenced by the seven-day moving average of the short-term holder’s spent output profit ratio (SOPR) moving back above 1.
• The probability of Bitcoin dropping to $23,000 is very much possible according to popular trader Crypto Tony.
Bitcoin Consolidates at $28,000
Bitcoin (BTC) failed to hold above the $27,500 level, suggesting that the gates for a downside move towards $23,000 are still open. On Monday May 29th, Bitcoin made a quick surge to over $28,000 after news that US lawmakers will soon pass a proposal to raise the debt ceiling further. However this was short lived and BTC eroded all its gains within 24 hours. As of press time it is trading 0.64 percent down at a price of 27754 and has a market cap of 538 billion USD.
Price Vulnerable To Drop To $23K
Popular trader Crypto Tony believes that there is high possibility for Bitcoin price going down towards 23K USD. He tweeted “If we close back below 27500 I will close my long and look for a short position” indicating his bearish outlook on current situation. Along with this blockchain analytics firm Glassnode also shows that seven day moving average of short term holders spent output profit ratio (SOPR) has once again moved back above 1 which implies capitulation from short term holders who are now selling their Bitcoins at profits instead of holding onto them in hopes for more upside movement.
Whales Capitalizing On Profit Taking
The whales in crypto space have been capitalizing on every opportunity they get for taking profits by manipulating prices according do their own benefits which often causes significant volatility in crypto markets as well as other financial markets around world when large sums of money are involved in such transactions.. This makes it important for investorsto stay informed about all latest happenings so they could make decisions accordingly and not fall prey to any kind of manipulation or frauds while investing into cryptocurrency market .
US Debt Ceiling Deal Announcement
On-chain resource Material Indicators noted: “As someone who frequently uses phrase #WildWestWeekend in #Crypto , I actually believe PA we’ve seen past few days is legit for multiple reasons including fact that bounce came from key technical support at 200 week MA & Debt Ceiling Deal announcement” . This suggests that even though many factors contribute towards movement in crypto markets but US debt ceiling deal played some part too pushing prices up as well as causing volatility which caused investors to take profits thereby resulting into downward pressure on prices once again .
Conclusion
It can be concluded from this article that while Bitcoin has failed to break through resistance at 27K USD , there remains possibilities for downward movement towards 23K USD due various reasons discussed earlier along with ongoing volatility created by whales capitalizing on profit taking opportunities they get . It would be wise decisionfor investorsto remain vigilant about all latest happenings so they can make decisions accordingly before investing into cryptocurrency markets .