Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

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Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

$20,000 or $32,000? Both feature in the outlook for Bitcoin price action going forward.

Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

Bitcoin (BTC) needs to hold current levels and work to reclaim higher ones to avoid a crash in the $20,000 range, the latest analysis warns. 

Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Is $20,000 incoming?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD still failing to cement $30,000 as support on the May 16 Wall Street open.

The pair had seen fresh losses after the weekly close at $31,300 — this, in itself, disappointing market participants after sealing a record seventh consecutive red weekly candle.

Even as the Luna Foundation Guard (LFG) revealed that it had sold almost all of its BTC reserves during last week’s Terra (LUNA) and TerraUSD meltdown, the implied lack of future selling failed to lift the mood on markets.

“Coming days going to be very important IMO. Keep these levels, grind higher from here,” popular trader Phoenix summarized in a Twitter post on the day.

Last week’s action, he added, could have already created a new trading range for Bitcoin with its macro range low at $28,800 figuring as its ceiling.

“If this turns out to be the case, Macro Range Low could flip into resistance to again reject price to lower levels,” he explained. 

Meanwhile, some remained cautiously optimistic on the short-term prospects, including Cointelegraph contributor Michaël van de Poppe.

“Not sure whether we’ll be getting that test going around $28.4K, but this is a scenario where I’d be looking at,” he told Twitter followers.

“If the risk-asset tide keeps ebbing, one of the best performers in history — Bitcoin — should face fitting mean reversion, but early adoption days may favor the nascent technology/asset,” he wrote in a further tweet on the day.

“Both Bitcoin and the S&P 500 have dropped below their 100-week moving averages.

Bitcoin vs. S&P 500 moving average chart. Source: Mike McGlone/ Twitter

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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