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 pauses at 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 part of the day’s analysis.
“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 opined that this liquidity represents genuine interest in BTC and is not part of an “order book spoof.”
#Bitcoin $22M+ spot buy wall is still between $27.4-27.5k.
Some of the bids were already placed yesterday.
Appears to be real orders that want to be filled. pic.twitter.com/IjgMrnss8M
— Daan Crypto Trades (@DaanCrypto) May 30, 2023
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.
#Bitcoin is about to break out of three different bullish patterns.
Just a little bit higher before they all confirm an upward move.
who is ready pic.twitter.com/8yZnTnn6xx
— Jelle (@CryptoJelleNL) May 30, 2023
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.
Nice bounce from $BTC so far, just as explained in Monday’s blog post.
This is your assortment for now. If we scale 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 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
Magazine: AI Eye: 25,000 traders bet on ChatGPT’s stock picks, AI sucks at the dice roll and more
This article does not contain any investment advice or recommendations. Any investment and trading venture involves risk, and readers should do their own research when making their decision.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.