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▲ Bitcoin (BTC), S&P 500/AI Generated Image
Although Bitcoin's (BTC) surge stalled above $78,000, large buying pressure is utilizing the decline as an opportunity for low-price accumulation, continuing the tug-of-war around the $74,000 support line.
According to Cointelegraph, a cryptocurrency specialized media outlet, on May 27 (local time), Bitcoin continued its sideways trend for the fourth consecutive week. The price confirmed support near $74,000 and faced resistance in the $78,000 to $80,000 range. Analysts at Hyblock suggested that the move up to $78,164 during the day indicated a possibility that existing long position holders exited near their breakeven point after moving out of loss territory.
Hyblock interpreted this range as a psychological price level. Hyblock stated, “It is highly likely that short positions that were in profit also exited near their breakeven point to prevent losses. Therefore, it is a psychological price level.” During the intraday price fluctuations, liquidation flows appeared, and in the current structure where liquidity pulls Bitcoin's price, a cluster of rapidly accumulating potential liquidity was observed in the $75,675 to $75,700 range.
Although Bitcoin failed to hold above $78,000, Blockstream CEO Adam Back reported via X (formerly Twitter) that a large Bitfinex investor has been continuously buying Bitcoin at low prices, 450 BTC per day, for the past 8.5 days using a Time-Weighted Average Price (TWAP) method. This was interpreted as a trend where spot market buying absorbed some of the selling, even as selling pressure from the derivatives market weighed down the price.
Cointelegraph described the day's price movement as a typical futures-driven sell-off. Selling through derivatives put pressure on Bitcoin's price, but spot market buyers absorbed some of the selling volume, mitigating the impact and strengthening the $74,000 support line. According to order book depth data, sellers were positioned from $77,700 in the 2.5% to 5% range, and a structure of continued resistance was formed with thick sell orders in the $78,000 to $80,000 range.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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