Bitcoin has been trading in the green for the past 24 hours as traditional markets are experiencing a general recovery. The number one cryptocurrency by market capitalization has seen an increase in selling pressure over the past month as macroeconomic conditions favored a decline in riskier assets.
At the time of writing, Bitcoin is trading at $31,200 with a profit of 7% in the last 24 hours.
Data from Material Indicators (MI) indicates Bitcoin support is below its current levels on lower time frames. This may support the bulls’ attempt to recover the previous highs.
On the higher time frames, MI also started registering an increase in the number of orders (sell orders) above the current Bitcoin levels. There is more than $40 million in orders around $31,000, which could act as a major resistance to any move led by the bulls.
Similarly, MI shows a slight rise in selling pressure from large investors. As seen below, with Bitcoin moving into the mid-$30,000s, whales (in brown on the chart) are starting to dump some BTC a bit on the market.
Via Twitter, analysts at Material Indicators claim that BTC price is preparing for a big move. This usually follows a long period of consolidation which, at the same time, follows an important upward or downward movement.
After weeks of sideways movement between $28,000 and $30,000, it appears that the bitcoin price is ready to pick a short-term trend. MI claimed The following traders warn about taking a long position when price reaches resistance levels:
BTC is preparing for a bigger move. Before you start playing it, remember how #crypto likes to squeeze shorts and catch long bargains. You can mitigate the risks by waiting for a confirmation of the breakout or a fake breakout.
Big BTC price action could come as soon as tomorrow, May 31Street, where bulls and bears prepare to attack/defend the monthly close. The $28,500-$28,900 range should act as an important support should more downsides occur.
Bitcoin Levels to Watch While Rising
As mentioned, Bitcoin must remain above $31,000 for at least one daily close before this level of resistance turns into support. Bulls should watch out for any potential dead cat bounce, a fake uptrend, which analyst Ali Martinez appears to think is likely based on the TD Sequential indicator.
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Martinez He said The following is on his Twitter account:
TD predicted the direction of the #Bitcoin trend since May 20th. It is now offering a green 9 candle (sell signal) on the 6-hour BTC chart. Similar price action could lead to a drop to $29.5K or $28.6K. BTC must close above $31.2K to invalidate the bearish thesis and rise to $35,000.