• Bitcoin fails to hold above the $27,500 level suggesting that the gates to a downside to $23,000 are still open.
• Popular trader Crypto Tony said that the move to $23,000 is very much possible.
• On-chain resource Material Indicators noted that short-term holders are selling at a profit again.

Bitcoin Fails to Hold Above $27,500

Bitcoin has failed to hold its support level of $27,500 and is vulnerable to drop further down to $23,000 as whales capitalize on profit-taking. The seven-day moving average of the short-term holder’s (STH) spent output profit ratio (SOPR) has once again moved back above 1, hinting that short-term holders are taking profits.

Move To $23,000 Possible

Popular trader Crypto Tony tweeted that if Bitcoin closes back below $27,500 he will close his long and look for a short position. This indicates that the move towards $23,000 is very much possible in near future.

Short Term Holders Profiting

On-chain data shows signs of capitulation from short term holders as they have been selling their BTC at profits with SOPR reading more than 1. According to analytics firm Blockware Solutions‘ weekly newsletter: “After a brief stint of coins moving at a loss STH-SOPR is now back above 1” which is positive for near term price action.

US Lawmakers Proposal

Earlier this week on Monday May 29th news broke out about US lawmakers passing proposal to raise debt ceiling further which made Bitcoin surge above 28k but was not able to sustain gains for long time and soon eroded 4 percent gains by Tuesday evening indicating bearish move ahead.

Conclusion

The probability of Bitcoin going down further remains open and it will be interesting to see how it responds around key technical levels in upcoming days or weeks