Bitcoin (BTC) fell at the open of Wall Street on May 30 as the recovery in US stocks failed to improve performance.
BTC/USD 1 hour candlestick chart on Bitstamp. Source: TradingView
Bitcoin pauses in monthly close
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading towards $27,700 after briefly surging above $28,000.
The pair encountered resistance below local highs around the weekly close, and after the opening bell, stocks also hit the water level.
Excitement surrounding a possible deal to raise the U.S. debt ceiling, which had previously buoyed crypto, also ebbed as market participants awaited the first test in Congress.
“Bitcoin had a tough time recapturing the weekend high,” reads the summary of resource indicators in part of the daily analysis.
“As the monthly candle approaches tomorrow, bulls and bears are struggling to control the momentum.”
An accompanying chart of BTC/USD on Binance showed strengthening supply liquidity in the active trading space.
BTC/USD order book data for Binance. Source: Material Indicators/Twitter
Popular trader Daan Crypto Trades opined that this liquidity represents a genuine interest in BTC and is not part of a “fake” order book.
#Bitcoin $22M+ spot buy wall is still between $27.4-27.5k.
Some of the bids were already placed yesterday.
They seem to be real orders that want to be fulfilled. pic.twitter.com/IjgMrnss8M
— Dan Crypto Trades (@DanCrypto) May 30, 2023
His trading colleague Jelle was also bullish, calling May 31 a potentially good date for bulls.
“It’s great how Bitcoin is developing here. We still have major support and it looks like we’re building a little hidden bullish divergence here,” read a Twitter comment.
Other news includes coverage of a possible triple breakout for Bitcoin related to market structures.
#Bitcoin is about to break out of three different bullish patterns.
Just a little higher before these all confirm one tier up.
who is ready pic.twitter.com/8yZnTnn6xx
— Jelle (@CryptoJelleNL) May 30, 2023
The CME gap is emerging
Meanwhile, on the radar was the looming hole in the CME futures markets and Bitcoin’s potential to “fill” it next.
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CME Bitcoin futures 1 hour candlestick chart. Source: TradingView
The weekend’s uptrend left a blank area on the futures chart between $26,900 and $27,850, presenting a potential near-term downside target for the spot price.
Popular trader Justin Bennett included this scenario in the day’s price analysis, noting that the range bound behavior would continue.
So far, $BTC has rallied strongly, just as explained in Monday’s blog post.
This is your assortment for now. If the price surges above $28,250, we are likely to see a liquidity squeeze towards $29,000 and $30,000.
But if $27,500 fails, expect the CME gap to fill.#Bitcoin https://t.co/kFabrgykZH pic.twitter.com/U5BnJgzvzm
— Justin Bennett (@JustinBennettFX) May 30, 2023
Meanwhile, fellow trader Mikybull Crypto took the opportunity to look back at other unfunded CME gaps of the year.
“Hint: gaps will not be closed immediately, but they should not be neglected,” he argued.
Bitcoin futures chart with gaps indicated. Source: Mikybull Crypto/Twitter
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