Bitcoin Risks New Lows at Monthly Close as BTC Price Retests $27,000

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Bitcoin (BTC) tested $27,000 on May 31 as weakness prevailed at the monthly close.

BTC/USD 1 hour candle chart on Bitstamp. Source: TradingViewAnalyst: Bitcoin hits crucial zone

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it continued to lose momentum after local highs near $28,500.

As the excitement of the start of the week has faded, traders and analysts have warned that this is now a decisive point for the short-term trend.

Crucial area approaching here for Bitcoin and diving into it, Michal van de Poppe, founder and CEO of trading company Eight, summarized.

If this area holds as support and Bitcoin can recover $27,500, all looks well to continue the uptrend. Drop below $26,600 and see plenty of new lows. BTC/USD annotated chart. Source: Michal van de Poppe/Twitter

Trader Skew added that spot buying liquidity on the world’s largest exchange, Binance, had been taken, with a reversal now needed to avoid a retest of the 200-week moving average (MA).

It had worked as prior support just above $26,000.

$BTC Binance Spot and walls filled now lol

strength is what you want to see now, if not go straight back to 200W MA https://t.co/u930TJ1E9V pic.twitter.com/D2XsU6mrk8

— Bias (@52kskew) May 31, 2023

Skew further stated that BTC/USD was testing several exponential MAs that day in a fairly large performance.

BTC/USD annotated chart. Source: Skew/Twitter

Continuing on Binance’s order book, monitoring resource Material Indicators had some predictions for how the monthly close might play out.

For the most part, Bitcoin liquidity changes in the order book were quite subtle today, but zooming out a little wider we can see that demand liquid from the $31,000 to 32,000 range $ is closing in on the active trading zone as supply liquidity was lowered, then adjusted slightly, he told Twitter followers.

Consolidating liquidity within the range should dampen volatility heading into the monthly close. The biggest concern for the bulls is that the liquidity of the offers is dwindling. BTC/USD order book data for Binance. Source: Material Indicators/TwitterLiquidity poised to fuel Bitcoin’s fire

Offering some hope in the event of a return to the upside, popular analyst Philip Swift noted that liquidity was on hold above $30,000.

Related: Mining Difficulty Surpasses 50 Trillion 5 Things to Know About Bitcoin This Week

Swift, creator of on-chain analytics site LookIntoBitcoin and co-founder of trading suite DecenTrader, suggested that any breakout could gain momentum and potentially hit $35,000.

*IF* Bitcoin can reach $31,000 (it should overcome the weekly resistance @ $30,000), there is a large amount of liquidity between $31,000 and $35,000, which could give the movement some momentum , he commented.

An attached graphic showed the Decentraders Liquidity Map tool.

BTC/USD liquidity card. Source: Philip Swift/Twitter

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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