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On May 9, Bitcoin (BTC) remained stagnant below $28,000 as the markets braced for the release of macroeconomic data.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin remains subdued ahead of CPI
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was trading around $27,700 at the opening of Wall Street.
The pair had experienced more significant declines the previous day, with a low of $27,300 marking the recent bottom.
Traders were optimistic that May 10 would bring some much-needed volatility with the release of the United States Consumer Price Index (CPI) for April.
One to monitor, #CPI figures set to be released tomorrow. A high CPI could lead to a drop in risk assets, while a low CPI might trigger a rally pic.twitter.com/gnjGt1XuPV
— Matthew Dixon – CEO Evai (@mdtrade) May 9, 2023
“Bitcoin continues to trend downwards, with $27,800 now acting as resistance. I anticipate another dip, and then we can prepare to long your longs in expectation of CPI,” Michaël van de Poppe, founder and CEO of trading firm Eight, informed his Twitter followers in an update.
Van de Poppe also mentioned that a bullish divergence in transaction volume would be necessary to support a recovery.
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
Others expressed a more pessimistic outlook, with the well-known trading resource Game of Trades forecasting further bearish movements.
Bitcoin appears to be gearing up for additional downside:
Excess optimism ✅
Head and shoulders pattern ✅
Bearish momentum ✅ pic.twitter.com/OpRasEmbBJ— Game of Trades (@GameofTrades_) May 8, 2023
“A confirmed breakdown would imply a target near the $24k area,” it noted the previous day.
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In a similar vein, fellow trader Crypto Tony continued to caution about potential further declines.
“If we drop below $27,000, we should see things escalate from there,” he stated.
“$25,200–$24,200 are my primary targets for now, where I will take some profits.”
BTC/USD annotated chart. Source: Crypto Tony/Twitter
Realized price data supports bearish outlook
Meanwhile, on-chain analytics platform CryptoQuant pointed to realized price clusters as possible support levels.
Related: BTC price may need a $24.4K dip as Bitcoin speculators stay in profit
In a Quicktake blog post on May 10, contributor Abramchart highlighted the area around $25,600 as significant.
This was determined using the UTXO Age Bands metric, which assesses the price at which different groups of BTC were last transacted.
“The nearest support level is at 25619, representing the average purchase price of wallets that acquired Bitcoin in the last 3-6 months,” Abramchart concluded.
Bitcoin Realized Price UTXO Age Bands chart. Source: CryptoQuant
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This article does not offer investment advice or recommendations. All investments and trading activities carry risks, and readers should perform their own research before making decisions.
