Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Finally, Bitcoin [BTC] caused a bullish breakout above the 2 week formation. After a weekend price pump amid preliminary agreement on the US debt ceiling, BTC secured the $26.2k support and crossed $27k.
The uptrend moment was extended into the last week of May when the king coin climbed above $26k – $27.5k on May 29.
At the time of writing, the price of BTC was $28,000, up 0.32% in the past 24 hours, turning most altcoins green.
Source: Coin360
However, the move to $28,000 has faced severe headwinds before Long term BTC holders tried to lock in profits at this level.
BTC is triggering a bullish breakout
Source: BTC/USDT on TradingView
Between May 11 – May 28, BTC formed a short-term range of $26,000 – $27.5,000. The pullback of the bullish breakout from the range on May 29 retested the range high at $27.5k.
After the pullback retest, the confirmed uptrend has BTC bulls watching for key resistance levels ahead.
One of the resistance levels is $28.5k, a major price ceiling/range high during the late March/early April price consolidation. A $29k or $30k retest could be likely if BTC clears the $28.5k roadblock.
But a break from the high range and the 20-EMA ($27.5k) could push BTC back into the range, derailing the bulls’ efforts. Such a retracement could end in the mid-range $26.8 or low in the $26k range.
The RSI reached overbought territory while the CMF returned to the zero mark, suggesting increased buying pressure but capital inflows into BTC eased.
Shorts not recommended
Source: Coinglass
Of the $1.56 million liquidated positions, $1.5 million were short positions in the 4-hour time frame. While this paints a near-term bullish outlook, it remains to be seen whether BTC will close above USD 28,000 at the end of May and extend the uptrend moment into June.
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Recent Glassnode data showed that Bitcoin hit new records regarding new addresses with non-zero positions or more than 0.01 coins.
Notably, addresses with 0.01 coins hit a new ATH (all-time high) of 12,080,129. Likewise, non-zero addresses hit an ATH of 47 million, with just a few months left until the 2024 halving.
Source: Glassnode