After testing the $28,000 level for a while, the price of Bitcoin has dropped back to the $27,500 range. The weekly close was at $27,917. The price reached as high as $28,580 but failed to hold the $28,300 support last week, leading to the current decline. Meanwhile, trading volumes have remained significantly low since mid-March.
Bitcoin (BTC) Analysis
The price of BTC dropped after strong employment data fueled concerns about the Federal Reserve tightening further, but quickly recovered. Currently, it seems to have paused its struggle to reclaim $28,000. At the time of writing, BTC was at $27,500 while waiting for the opening of US markets.
To interpret the short-term outlook, crypto analyst Skew examined the current order books. The direction of liquidity pressure can provide insights into the short-term movement of the price. The popular analyst stated the following:
“In the short term, we can clearly see that the market is still trading around $28,000 as resistance. Breaking through this area will require a significant spot buyer. Every jump to $28,000 in futures trading triggers the opening of short positions.”
Will Cryptocurrencies Rise?
While sharing his expectation for an upward movement, Skew emphasized the reaction in the resistance area and highlighted his pessimism. Daan Crypto Trades warned that if a sudden breakout occurs, it could catch short sellers off guard.
“Personally, with BTC sitting on this significant $28,000 level that has the Daily/Weekly 200MA, I wouldn’t be keen on shorting any deviation above it. We have often seen weekend breakouts at such levels, and they tend to not retreat as easily as they used to.”
According to the analyst’s prediction, a surprise upward breakout could disappoint investors who see every price increase as an opportunity for short selling.
Michael Poppe, known for his optimism, also shared his thoughts. As one of the most followed crypto analysts, Poppe said:
“In my opinion, Bitcoin will continue its rise and has the potential to reach $30,000 as uncertainty increases worldwide.”
Poppe previously predicted that the price would reach $30,000 this month.
