Bitcoin showed its hand today with a break below $27,500.
I’ve written about it a few times as a must-hold level for bulls, given Sunday’s close above it.
As of now, this looks like yet another fakeout/deviation from BTC.
And it isn’t the first time we’ve seen this in May.
It’s been one deviation after the next for BTC since the $26,500 level materialized in March.
Today’s selloff means the $27,500-$27,650 area flips back to resistance.
It also re-exposes the $26,500 support region.
But a word of caution before you get too bearish on Bitcoin heading into June.
Today is the last trading day of May, so take today’s price action with a grain of salt.
As large institutions close their books, we often see markets become erratic and indecisive in the final 24-48 hours of the month.
So how Bitcoin trades in the first week of June will be telling.
But if bulls can’t reclaim $27,500-$27,650 quickly, we’re looking at another selloff toward $26,500, potentially lower.
Regardless, remember to trade BTC level to level and respect support as support and resistance as resistance.
Given how sideways the crypto market has been since March, it isn’t the time to swing for the fence and target the next big move.
A better approach is to trade level by level and take what the market gives you.
