Bitcoin remains in a narrow range with low liquidity, but expectations for new local lows are increasing.
Bitcoin had already fallen below the $27,000 support level on May 17, and many traders are waiting for new lows to be reached.
Whales encounter low liquidity
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD is trading near $26,800 at the time of writing.
The pair breached the $27,000 mark multiple times the day before, with the level forming a low time frame focus that is now in danger of being breached.
Trader Crypto Tony summarized the recent activity: “3 waves up to resistance, then a retest and rejection of the resistance zone.”
He added that a potential target now awaits is $26,400.
Trading account TraderSZ had previously predicted that if the decline continued, it would enter an "expansion candle."
Another popular trader, Daan Crypto Trades, continued: “Small long flush seen early morning.”
“On the Bybit futures chart, we can see how the ask is getting filled and from there, the spot price is being pushed down to eliminate the longs that have accumulated in this mini range. Still choppy overall with no clear direction.”
Analyzing the order book setup on Binance, the monitoring resource Material Indicator pointed out an overall lack of liquidity. It revealed that traders with the largest volumes have therefore reduced their activities to a minimum, possibly due to the absence of tokens exposing them to potential slippage.
Zooming out, however, the accompanying narrative for many remains that the concept of “choppy” price action continues.
The current trading range that has served as a key support and resistance area since 2021 shows no signs of giving up its grip.
“Over the next few days, I expect price action to range between $27,200 and $26,500,” Titan of Crypto wrote in such a market assessment.
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BTC price target at $25,000 in stock comparison
While bullish in the long term, trading group Stockmoney Lizards suggested a potential downside target of $25,000 on the day.
Related: Bitcoin Traders Eye CME Gap With $24,000 BTC Price Downside Target in Play
Acknowledging the “head and shoulders” pattern that emerged in April – a bearish signal as previously reported – it also points to the 25-week simple moving average (SMA) as a possible support line.
The 25-week MA is just $23,100 on the day but is expected to be tested again in June.
Nonetheless, a separate post called the overall shape of the price performance a “well-known” pattern, citing similar moves in U.S. stocks over the past few years. These moves ultimately led to an upside breakout.
