Bitcoin has fallen 5.5% from its all-time high in a week as new support zones emerge. Where will the price of BTC go next?
Traders and analysts are setting expectations for the market as the bulls attempt to hold the $105,000 level to close out the Wall Street trading week.
The Bitcoin bull market "is likely" about to end
Bitcoin has temporarily halted its upward momentum this week, returning to test the price levels recorded about 10 days ago.
While most of the market expects this to be just a temporary consolidation phase before prices rise again, some people are cautious, arguing that one should not be overly complacent — some even suggest that the bull market may be coming to an end.
The famous trader Roman is one of them. Based on the principle of decreasing profits through each price cycle, he argues that the glory days of the current bullrun are about to end.
"This cycle has increased by 600% so far, the previous cycle increased by 2,000%, and the cycle before that was 10,000%. If you haven't noticed, profits are gradually falling over time. There is a possibility that we have reached the peak or are very close to it!" he wrote in a part of the post on X on May 28.
BTC price chart 1 week | Source: RomanAn accompanying chart has shown important support levels on the larger timeframe, with the $105,000 level being one of the notable thresholds.
In another post, Roman mentioned that he expects to see "a bit of sideways volatility" as the level of $105,000 is brought back into play.
Liquidating positions brings the support zone back under $100,000
Other investors in the market are also starting to notice the possibility that price levels close to 100,000 dollars will return soon.
Observing the order book liquidity status on the latest exchanges shows that the zone of 103,000–104,000 dollars is an area receiving immediate attention.
However, below this zone, data from the CoinGlass monitoring platform shows very few strong support levels and this could pave the way for a deep fall below the 6-digit mark (100.000 dollars).
BTC Liquidation Map | Source: CoinGlass"Pay attention to the significant long liquidation clusters that are below the current price, especially around the $103,000 and $99,000 zones. This suggests that leveraged long positions will be wiped out here and those areas can act as potential support," the TheKingfisher trading account explained on X during the day.
Classic support zones waiting to be retested
Looking further ahead, the on-chain analysis platform Glassnode has pointed out three important support trend lines this week.
Accordingly, the two simple moving averages (SMA) on the daily chart, along with the average cost of short-term holders, are the levels that need to be closely monitored in the context of the ongoing bullish market.
Data from TradingView shows that the 111-day SMA is currently at $92,100, and the 200-day SMA is at $94,700.
Glassnode stated in its weekly newsletter The Week Onchain as follows:
"The 111-day and 200-day DMA are popular technical indicators used to assess the momentum and strength of Bitcoin market trends. We can supplement these technical price patterns with the short-term holder's average cost basis — an on-chain indicator reflecting the average purchase price of new investors. Historically, this threshold often plays a crucial role in delineating between bullish and bearish market phases in the short term."
BTC price chart with 111-day, 200-day SMA, average cost of short-term holders | Source: GlassnodeThe average cost of short-term holders is currently at $95,900.
"Currently, the price is trading significantly higher than all three of these important levels, highlighting the strength of the uptrend since April. Notably, these price levels are very close to each other and this convergence creates an important support zone with high reliability — a zone that needs to be maintained to sustain the next growth momentum," Glassnode added.
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What level can the price of Bitcoin fall to?
Bitcoin has fallen 5.5% from its all-time high in a week as new support zones emerge. Where will the price of BTC go next?
Traders and analysts are setting expectations for the market as the bulls attempt to hold the $105,000 level to close out the Wall Street trading week.
The Bitcoin bull market "is likely" about to end
Bitcoin has temporarily halted its upward momentum this week, returning to test the price levels recorded about 10 days ago.
While most of the market expects this to be just a temporary consolidation phase before prices rise again, some people are cautious, arguing that one should not be overly complacent — some even suggest that the bull market may be coming to an end.
The famous trader Roman is one of them. Based on the principle of decreasing profits through each price cycle, he argues that the glory days of the current bullrun are about to end.
"This cycle has increased by 600% so far, the previous cycle increased by 2,000%, and the cycle before that was 10,000%. If you haven't noticed, profits are gradually falling over time. There is a possibility that we have reached the peak or are very close to it!" he wrote in a part of the post on X on May 28.
In another post, Roman mentioned that he expects to see "a bit of sideways volatility" as the level of $105,000 is brought back into play.
Liquidating positions brings the support zone back under $100,000
Other investors in the market are also starting to notice the possibility that price levels close to 100,000 dollars will return soon.
Observing the order book liquidity status on the latest exchanges shows that the zone of 103,000–104,000 dollars is an area receiving immediate attention.
However, below this zone, data from the CoinGlass monitoring platform shows very few strong support levels and this could pave the way for a deep fall below the 6-digit mark (100.000 dollars).
Classic support zones waiting to be retested
Looking further ahead, the on-chain analysis platform Glassnode has pointed out three important support trend lines this week.
Accordingly, the two simple moving averages (SMA) on the daily chart, along with the average cost of short-term holders, are the levels that need to be closely monitored in the context of the ongoing bullish market.
Data from TradingView shows that the 111-day SMA is currently at $92,100, and the 200-day SMA is at $94,700.
Glassnode stated in its weekly newsletter The Week Onchain as follows:
"The 111-day and 200-day DMA are popular technical indicators used to assess the momentum and strength of Bitcoin market trends. We can supplement these technical price patterns with the short-term holder's average cost basis — an on-chain indicator reflecting the average purchase price of new investors. Historically, this threshold often plays a crucial role in delineating between bullish and bearish market phases in the short term."
"Currently, the price is trading significantly higher than all three of these important levels, highlighting the strength of the uptrend since April. Notably, these price levels are very close to each other and this convergence creates an important support zone with high reliability — a zone that needs to be maintained to sustain the next growth momentum," Glassnode added.
Dinh Dinh