Bitcoin (BTC) experienced a drop to its lowest point in four days as Wall Street opened on May 28, disappointing bullish investors. BTC/USD was seen trading below $68,000 after reaching weekly highs earlier. The surge to $70,600 during the Memorial Day holiday did not involve institutional participation, such as demand for spot Bitcoin exchange-traded funds (ETFs). Although Bitcoin’s rally gained momentum quickly, it was short-lived as the market retraced all its progress. The volatility coincided with the movement of $7 billion worth of BTC from wallets associated with the defunct exchange Mt. Gox. Market observers predicted the retracement, with popular trader Credible Crypto stating, “And there is a full retrace of that recent pump as expected.” CoinGlass data showed liquidity concentrations around the spot price, with $67,000 becoming a significant level of interest. Fellow trader Daan Crypto Trades noted a positive impact on market structure, with leverage being removed as all positions entered during the previous day’s move were flushed out. BTC’s price performance continued to depend on breaking through key resistance levels and converting them into support. Overcoming the 2021 all-time highs of $69,000 and the subsequent level of $73,800 remains the biggest challenge. Despite the lack of upward momentum since March, a popular trader named Jelle observed a consolidatory structure on monthly timeframes. He also highlighted that BTC has remained within a rising channel since mid-2017 when it reached historical all-time highs of $20,000. Jelle expects this pattern to persist in the future. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
BTC price drops below $68K, causing Bitcoin to fail crucial resistance flip