Bitcoin (BTC) treaded water below $28,000 on May 9 as markets prepared for macroeconomic data releases.
Bitcoin stays muted on eve of CPI
The pair had seen deeper losses the day prior, with a tap of $27,300 so far marking the local bottom.
Traders hoped that May 10 would provide some much-needed volatility in the form of the United States Consumer Price Index (CPI) print for April.
— Matthew Dixon – CEO Evai (@mdtrade) May 9, 2023
“Bitcoin still trending downwards, as $27,800 now becomes resistance. I’m expecting a sweep lower again, and then we’re ready to long your longs in anticipation of CPI,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers in an update.
Van de Poppe added that a bullish divergence in transaction volume was also needed to sustain a recovery.
Others were decidedly less optimistic, with popular trading resource Game of Trades predicting bearish moves to come.
Bitcoin is likely setting up for more downside:
Excess optimism ✅
Head and shoulders pattern ✅
Bearish momentum ✅ pic.twitter.com/OpRasEmbBJ
— Game of Trades (@GameofTrades_) May 8, 2023
“A confirmed breakdown will have an implied target near the $24k region,” it added the day prior.
In part of his own analysis adopting a similar position, fellow trader Crypto Tony continued to warn of more downside to come.
“Once we lose $27,000 then things should start escalating from here,” he argued.
“$25,200–$24,200 are my main targets for now and where i will shed some profit.”
Realized price data joins bearish thesis
Eyeing its own targets, meanwhile, on-chain analytics platform CryptoQuant suggested realized price clusters as potential support.
In one of its Quicktake blog posts on May 10, contributor Abramchart flagged the area around $25,600 as the one to watch.
This came through the use of the UTXO Age Bands metric, which measures the price at which various cohorts of BTC last moved.
“The closest support area is at 25619, which represents the average purchase price of wallets that bought Bitcoin within the last 3-6 months,” Abramchart summarized.
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