Liquidity Crisis Could Lead to Bitcoin Decline

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 day ago

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Liquidity Drain Warning: Michael Kramer of Mott Capital Management highlights a looming $150 billion liquidity drain from May 28 to June 5, which could significantly impact the financial markets, particularly Bitcoin.
Bitcoin Price Decline: Since May 12, while the stock market has risen approximately 1.8%, Bitcoin has dropped around 7% to 8%, currently trading at $73,893, below Kramer's baseline of $75,000, with a potential drop to $70,000 if it breaks that level.
Debt Settlement Impact: Kramer notes that upcoming debt settlements will include $15 billion in T-bill settlements and $47 billion in coupon settlements, which could tighten liquidity and exert downward pressure on Bitcoin prices.
Market Reaction Analysis: Despite a $933 million liquidation event, Kramer believes Bitcoin serves as a liquidity indicator, and the current market adjustment may simply be a routine end-of-month correction without signaling a new low yet.

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Technical Analysis for BTC

Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 4 indicators are flashing buy, while 3 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Bitcoin (BTC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	66854.446	69683.468	72421.956	75250.978	77989.466	80818.488	83556.976
Fibonacci	69683.468	71810.257	73124.189	75250.978	77377.767	78691.699	80818.488

About BTC

Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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