Bitcoin (BTC) held its most recent gains into May 27 as traders called for a change in “bearish” market sentiment.
Trader awaits “pretty major move” for BTC price
Data from TradingView followed BTC/USD as it entered the weekend at around $26,700.
The week’s macroeconomic data from the United States had ended with a surprise, as a new Personal Consumption Expenditures (PCE) index print showed the economy weathering tighter financial conditions much better than expected.
Markets then began 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.
Despite the price comeback, however, the mood remained overly cautious for some.
“Retail is so extremely bearish on Bitcoin and Crypto, it’s almost insane,” Michaël van de Poppe, founder and CEO of trading firm Eight, argued.
“People are stuck in the 2022 mindset.”
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.
“Price trying to reclaim 100D MA after nice move up from 200W MA. Price is currently pinned between 4H EMAs & 1D EMAs,” analysis of the 4-hour BTC/USD chart stated the day prior.
“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.
$BTC Binance Open Interest
Price is hovering around previous breakdown & majority of the OI has been cleared out
-12K BTC ($320.9M)
a lot less froth in the market meaning whichever way spot moves, probably wouldn’t fade it pic.twitter.com/dgb9OW2GnB
— Skew Δ (@52kskew) May 27, 2023
Skew is not the only well-known voice calling for a pronounced shift in BTC price behavior next. This week, 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.“
Bitcoin price still “consolidating”
Fellow trader and analyst Rekt Capital stated that additional strength was still needed to flip the trajectory in the bulls’ favor.
“BTC still in the middle of the red downtrending channel, just consolidating here with the red resistance area above the crucial one to beat if sentiment is to decisively shift in the short-term,” he wrote, referring to a chart of 1-day timeframes.
That chart 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.