Monday, 29 May 2023

Crypto News

Bitcoin price hits $27.2K, but new analysis warns more losses ‘likely’

Bitcoin price hits $27.2K, but new analysis warns more losses 'likely'

Bitcoin (BTC) sought to recover $27,000 into the May 14 weekly close as volatility picked up out of hours.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price gains over 7% in two days

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD spiking to $27,200 on Bitstamp.

Its highest in several days, the performance reflected gains of around 7.5% versus local lows from the week’s final Wall Street trading session.

“Strong movements on Bitcoin as it swept all the lows in recent moves and grinds back up to $27.2K,” an optimistic Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.

“Patience, as flipping $27.2K is the first serious trigger for continuation upwards. In that case, close to a temporary bottom & potentially new highs to $36-42K still possible.”

BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

Popular trader Daan Crypto Trades noted that there was now potential for a “gap” in CME Bitcoin futures markets to appear at the May 15 open.

“If BTC holds at current prices, it will open up with a CME gap tomorrow. These gaps to tend to get filled, especially during a ranging environment,” he told Twitter followers.

“It’s good to note how during strong trends (up and down), these gaps are more likely to be left open.”

CME Bitcoin futures annotated chart. Source: Daan Crypto Trades/ Twitter

Earlier in the weekend, Cointelegraph reported on the general cautious tone being adopted by market participants, with Van de Poppe among those demanding for bullish reclaiming of levels around $27,000 before considering long positions.

In an update on the current state of the Binance order book, meanwhile, monitoring resource Material Indicators noted liquidity moving around, along with bid liquidity at $25,400 thinning by around $17 million.

Bitcoin bulls face tough weekly challenge

Looking toward the weekly close itself, trader and analyst Rekt Capital was less positive on the immediate prospects.

Related: ‘Don’t short when it’s dark green’ — How to trade the 2024 Bitcoin halving

In analysis on the day, he warned that a close at…

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