CoinTelegraph reported:
Bitcoin (BTC) tested $27,000 on May 31 as weakness prevailed into the monthly close.
![Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K 1 b5214945 85c3 4831 a924 0965b261489a](https://s3.cointelegraph.com/uploads/2023-05/b5214945-85c3-4831-a924-0965b261489a.png)
Analyst: Bitcoin reaching “crucial area”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to lose momentum after local highs near $28,500.
As early-week excitement faded, traders and analysts warned that now was a make-or-break point for the short-term trend.
“Crucial area approaching here for Bitcoin and dipped into it,” Michaël van de Poppe, founder and CEO of trading firm Eight, summarized.
“If this zone sustains as support & Bitcoin will be able to reclaim $27,500, everything looks like we’ll continue the upwards trend. Drop beneath $26,600 and we’ll see new lows.”
![Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K 2 1d21dba4 74a6 4f28 a7fb cc7b19dc58cb](https://s3.cointelegraph.com/uploads/2023-05/1d21dba4-74a6-4f28-a7fb-cc7b19dc58cb.png)
Trader Skew added that spot buy liquidity on the largest global exchange, Binance, had been taken, with a reversal now required to avoid a retest of the 200-week moving average (MA).
This had functioned as earlier support at just above $26,000.
$BTC Binance Spot
and walls filled now lolstrength is what you want to see now else straight back to 200W MA https://t.co/u930TJ1E9V pic.twitter.com/D2XsU6mrk8
— Skew Δ (@52kskew) May 31, 2023
Skew further commented that BTC/USD was testing several exponential MAs on the day in a “pretty important” performance.
![Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K 3 a320f108 137f 47e7 9f22 703a7716dce5](https://s3.cointelegraph.com/uploads/2023-05/a320f108-137f-47e7-9f22-703a7716dce5.jpeg)
Continuing on the Binance order book, monitoring resource Material Indicators had some predictions for how the monthly close could play out.
“For the most part, Bitcoin liquidity changes in the order book have been pretty subtle today, but by zooming out a little wider we can see ask liquid from the $31k – $32k range is dropping in closer to the active trading zone while bid liquidity has been laddered down, then adjusted slightly,” it told Twitter followers.
“Liquidity consolidating into the range should dampen volatility heading into the monthly close. The bigger concern for bulls is that bid liquidity is thinning out.”
![Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K 4 f5a86ea0 0507 45ef 81a5 db1c49a5d17e](https://s3.cointelegraph.com/uploads/2023-05/f5a86ea0-0507-45ef-81a5-db1c49a5d17e.jpeg)
Liquidity ready to fuel Bitcoin fire
Offering some hope in the event of upside returning, popular analyst Philip Swift noted liquidity lying in wait above $30,000.
Related: Mining difficulty passes 50 trillion — 5 things to know in Bitcoin this week
Swift, creator of on-chain analytics site LookIntoBitcoin and co-founder of trading suite DecenTrader, suggested that any breakout could gain “momentum” and potentially head to $35,000.
“*IF* Bitcoin can get up to $31k (it would have to overcome weekly resistance @$30k) there is a big amount of liquidity between $31k – $35k which could add some momentum to the move,” he commented.
An accompanying chart showed Decentrader’s Liquidity Map tool.
![Bitcoin risks ‘new lows’ into monthly close as BTC price retests $27K 5 f913f060 9a15 420c 8943 d16a3a43a8ce](https://s3.cointelegraph.com/uploads/2023-05/f913f060-9a15-420c-8943-d16a3a43a8ce.jpeg)
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