empty
17.05.2023 11:28 AM
Bitcoin moves to retest $26.6k amid falling trading activity

By the middle of May, we can confidently say that the phrase "sell in May and go away" has fully justified itself. Throughout the month, we've been observing a downward corrective movement of BTC, and during pauses, consolidation and local price pullbacks of the cryptocurrency.

This image is no longer relevant

We've seen a clear withdrawal of liquidity below the $26.6k level, which was mentioned earlier. We've also witnessed the price return above the $26.6k support zone, which is a bullish signal. However, a combination of fundamental and technical factors suggest that the structure of the upward trend could be disrupted soon.

Fundamental Factors

Another series of the saga with the global economy's recession has come to its conclusion. According to a BofA survey, market players anticipate a soft landing of the global economy in the next 12 months. The majority of respondents believe that a recession in the U.S. can be avoided, which was a positive signal for investors.

This image is no longer relevant

Meanwhile, pessimistic sentiments continue to dominate within the crypto market, accompanied by a gradual decrease in trading activity. It is reported that May 2023 may become the worst month in terms of trading volumes on centralized exchanges since October 2020.

This image is no longer relevant

The average commission sizes in the Bitcoin network have also returned to optimal values. On one hand, this confirms the low trading activity and interest in the cryptocurrency. On the other hand, it will allow reducing the cost of mining BTC, leading to more active actions from miners.

This image is no longer relevant

Trading volumes and network activity in the Bitcoin market have also dropped to yearly lows. All these facts indicate a significant decrease in investment activity and bearish sentiment regarding Bitcoin. However, in the near future, several events might occur that could change the balance of power in the crypto market.

A Volatile End to the Week

Tomorrow, global markets are expecting important economic statistics on the U.S. labor market. Recently, employment in the United States has begun to decline due to a worsening liquidity situation. If the number of unemployed continues to grow, it's quite possible that the Federal Reserve will adjust its policy, and we might expect a rate cut as early as this summer.

This image is no longer relevant

We will learn about these and other plans of the Federal Reserve on Friday, when officials will share their thoughts on the current economic situation. First and foremost, the markets will be awaiting the department's further plans regarding the key rate. These events will trigger a volatility spike and may provoke sharp price movements in BTC.

BTC/USD Analysis

Meanwhile, Bitcoin has definitively completed the process of withdrawing liquidity below $26.6k. The asset made a sharp leap below $26k and swept all the supply in one go, after which it rebounded. Currently, there is a consolidation phase happening under the influence of bears, which is causing a price decline.

This image is no longer relevant

Bulls are not allowed above $27.8k, while sellers continue their attempts to break the $26.6k level, which, at this stage, acts as a key support zone. As of May 17, the situation is under control, but there is a possibility of a bearish breakthrough at the $26.6k level. This event could significantly strengthen the bears' position and lead to further decline.

This image is no longer relevant

With further decline, the structure of the upward trend is threatened, which originates near the $24.6k–$25k area. As of 08:00 UTC, technical metrics are flat, which is typical for periods of low trading and network activity. Therefore, the $26.6k support level is still standing, but the situation can change.

Conclusions

The main task for buyers this week will be to hold the $26.6k level. The level has held despite the pressure from sellers, but volatility spikes in the next few days could change the situation. Considering this, the $26.6k level is crucial for determining the future prospects of Bitcoin.

Artem Petrenko,
Especialista em análise na InstaForex
© 2007-2025
Selecionar intervalo de tempo
5
min
15
min
30
min
1
hora
4
horas
1
dia
1
s.
Ganhe com as variações das taxas das criptomoedas com a InstaForex.
Baixe o MetaTrader 4 e abra a sua primeira operação.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    PARTICIPE DO CONCURSO

Recommended Stories

Dicas de negociação para o mercado de criptomoedas em 27 de junho (sessão norte-americana)

O Bitcoin fez outra tentativa de retornar ao nível de US$ 108.000, mas não conseguiu mantê-lo e corrigiu para baixo, caindo abaixo da marca de US$ 107.000, um movimento

Miroslaw Bawulski 18:07 2025-06-27 UTC+2

Recomendações de negociação para o mercado de criptomoedas em 27 de junho

O Bitcoin e o Ethereum interromperam seu movimento de alta após os dados fundamentais fracos de ontem, indicando uma desaceleração no crescimento da economia dos EUA. Mas esse

Miroslaw Bawulski 17:56 2025-06-27 UTC+2

Outra grande empresa anuncia um aumento de US$ 1 bilhão para comprar Bitcoin

O mercado de criptomoedas está demonstrando forte confiança. Dada a sua correlação com o mercado de ações dos EUA - onde os máximos históricos estão sendo atualizados - há espaço

Jakub Novak 16:09 2025-06-27 UTC+2

Recomendações de negociação para o mercado de criptomoedas em 26 de junho

Bitcoin e Ethereum estão demonstrando um crescimento estável em meio a novas previsões sobre o número de cortes nas taxas de juros esperados pela Reserva Federal este ano. Outra postura

Miroslaw Bawulski 16:11 2025-06-26 UTC+2

Recomendações de negociação para o mercado de criptomoedas em 25 de junho

Bitcoin and Ethereum continued their rally yesterday, triggered by news of a ceasefire between Iran and Israel. Federal Reserve Chair Jerome Powell's dovish tone during his testimony in the House

Miroslaw Bawulski 17:58 2025-06-25 UTC+2

Análise BTC/USD em 25 de junho de 2025

O padrão de ondas no gráfico de 4 horas do BTC/USD permanece, em geral, claro. Observa-se uma formação corretiva descendente que se completou próxima ao nível de US$ 75.000

Chin Zhao 17:42 2025-06-25 UTC+2

BTC/USD está tentando atingir o nível de 106.000. Terça-feira, 24 de junho de 2025

1. Resumo do sentimento do mercado Quando ontem o presidente Trump abrandou a sua agressividade contra o Irã, as tensões geopolíticas mundiais atuais diminuíram, levando vários agentes do mercado

Arief Makmur 15:22 2025-06-25 UTC+2

Bitcoin visa crescimento contínuo

Ontem, o Bitcoin continuou sua trajetória ascendente, impulsionado pelo tom visivelmente mais brando do presidente do Federal Reserve, Jerome Powell, em relação ao futuro das taxas de juros. Suas observações

Jakub Novak 14:38 2025-06-25 UTC+2

Recomendações de negociação para o mercado de criptomoedas em 24 de junho

O Bitcoin e o Ethereum subiram acentuadamente após surgirem notícias de que o Irã e Israel poderiam interromper seus ataques. O presidente dos EUA, Donald Trump, anunciou ontem

Miroslaw Bawulski 17:39 2025-06-24 UTC+2

Bitcoin e Ethereum recuperam força

Bitcoin e Ethereum estão apresentando um forte desempenho. Após manter o nível de US$ 100.000, os grandes compradores voltaram à sua atividade normal e já empurraram o BTC de volta

Jakub Novak 14:36 2025-06-24 UTC+2
Não pode falar agora?
Faça sua pergunta no chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.