Bitcoin (BTC) tumbled on Wall Street on May 30 as the return of US stocks failed to boost performance.
BTC/USD 1 hour candlestick chart on Bitstamp. Source: TradingView
Bitcoin is pausing towards the end of the month
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading towards $27,700 after briefly surging above $28,000.
From around the weekly close, the pair encountered resistance below its local highs and stocks also faltered after the opening bell.
Excitement surrounding a possible agreement to raise the U.S. debt ceiling, which had previously buoyed cryptocurrencies, also ebbed as market participants awaited the first test in Congress.
“Bitcoin struggled to reclaim the weekend high,” monitoring resource Material Indicators summarized in an analysis that day.
“As tomorrow approaches the monthly candle close, bulls and bears are struggling to control the momentum.”
An accompanying chart of BTC/USD on Binance showed increasing supply liquidity in the active trading space.
BTC/USD order book data for Binance. Source: Material Indicators/Twitter
Popular trader Daan Crypto Trades suggested that liquidity represents genuine interest in BTC and is not part of an order book “spoofing”.
His trading colleague Jelle was also bullish, calling May 31 a potentially good date for bulls.
“I really like how Bitcoin is developing here. We still hold key support and it looks like we’re building a little hidden bullish divergence here,” read a Twitter comment.
Other articles reported, among other things, about a possible triple breakout of Bitcoin with regard to market structures.
The CME gap is emerging
On the radar, meanwhile, was the looming gap in the CME futures markets and Bitcoin’s potential to “fill” it next.
Related: Mining Difficulty Surpasses 50 Trillion 5 Things You Should Know About Bitcoin This Week
CME bitcoin futures 1 hour candlestick chart. Source: TradingView
The weekend’s uptrend left a gap between $26,900 and $27,850 on the futures chart, presenting a potential short-term downside target for the spot price.
Popular trader Justin Bennett included this scenario in the day’s price analysis, suggesting that the volatility would continue.
Meanwhile, fellow trader Mikybull Crypto took the opportunity to present a roundup of other open CME gaps for the year.
“Hint: gaps will not be closed immediately, but they must not be neglected,” he argued.
Bitcoin futures chart with gaps indicated. Source: Mikybull Crypto/Twitter
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