Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The US overwhelmingly passed the recent debt ceiling deal, giving markets a breather. But From Bitcoin [BTC] The bearish sentiment persists after failing to turn bullish on the higher time frame chart. It ended May in the red, losing about 4% in monthly performance.
Source: Source: Coin360
In spite of the price pump Seen over the weekend, BTC recorded $11 million outflows in short Bitcoin during the same period. The trend marks the sixth consecutive outflow totaling more than $270 million, according to Coinshares’ Digital Asset Fund Flows Weekly report.
While this underlines the prevailing negative sentiment, declining volumes were also a cause for concern.
BTC’s Roadblock to Trendline Resistance
Source: BTC/USDT on TradingView
BTC price action has made lower highs after price rejection from $31,000 in mid-April. A trendline resistance (white) has become a major roadblock on the daily chart, preventing BTC from turning bullish.
A recent bullish breakout on May 28 was rejected by the trendline resistance, returning BTC to its previous mid-range of $26.8k. Below the mid-range is the 111-day MA (moving average) of $26.5k.
The 111-MA has monitored three major declines so far. One in mid-March and two in May, making it an important dynamic support level. A break below the MA and a low of $26.0k could give sellers more of an upper hand, which could further erode bullish sentiment.
The two support levels to watch out for on such an extended dive are $25k and $24k.
Conversely, BTC could recover in the mid-range, which is equivalent to $26.6k, an important late March/April support level following the US debt ceiling news.
However, bulls must clear the roadblock of trendline resistance to gain leverage. Moving north, resistance levels were at $28.5k, $29.8k and $31k.
CVD spot decreases
Source: Coinalyse
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Towards the end of May, the CVD (Cumulative Volume Delta) spot took a nosedive, dropping steadily from May 29 to June 1 (as of this writing). It strengthens the influence of the sellers in recent days.
With the US debt ceiling removed, the focus now turns to the FOMC meeting in mid-June. In addition, the $28,000 level is marked by Long term BTC holders in profits and could remain a major obstacle for a while.