• Bitcoin (BTC) tested $27,000 as weakness persisted on the last day of May.
• Analysts warn that this is a make-or-break point for the short-term trend and BTC may see “new lows” if it fails to hold support.
• Binance order book data suggests liquidity consolidating around the active trading zone, reducing volatility and potentially helping bulls.

Bitcoin Tests $27K as Weakness Prevails

Bitcoin (BTC) tested $27,000 on May 31 as weakness prevailed into the monthly close. Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to lose momentum after local highs near $28,500.

Analysts Warn of ‘New Lows’

Analysts warned that now was a make-or-break point for the short-term trend. Michaël van de Poppe, founder and CEO of trading firm Eight, summarized that if Bitcoin fails to reclaim $27,500 then new lows could be seen beneath $26,600. 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 which had functioned as earlier support at just above $26,000.

Binance Order Book Data Suggests Liquidity Consolidating Around Active Zone

Monitoring resource Material Indicators commented that ask liquid from the $31k -$32k range was dropping in closer to the active trading zone while bid liquidity had been laddered down and adjusted slightly. Liquidity consolidating into this range should dampen volatility heading into the monthly close while bid liquidity thinning out is a bigger concern for bulls.

Short Term Trend Remains Key

The importance of Bitcoin reclaiming $27,500 remains key in determining whether we continue an upwards trend or see new lows beneath $26,600 according to analysts. If Bitcoin can hold support here then bullish sentiment can remain intact through June but if not then bearish sentiment could start to gain momentum again throughout next month’s performance.

Liquidity Ready To Fuel Fire

Despite potential concerns surrounding thinning bid liquidity there is some hope in terms of upswing potential with Van de Poppe suggesting long positions are “ready” when buyers return later in June or July depending on market conditions over coming weeks.

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