Bitcoin price slumped below $28,000 as analysts looked at the drop in the CME futures gap. BTC price action sees weakness a day after the May monthly close as Bitcoin analysts watch bid liquidity closely.
Bitcoin price stalls towards monthly close
cryptocoin.com As you follow, Bitcoin briefly rose above $28,000. However, BTC faced resistance below its local highs from the weekly close. In addition, stocks also flooded after the opening bell. Excitement around a possible deal to raise the US debt ceiling, which had previously strengthened crypto, has also cooled as market participants await its first test in Congress.
In part of its analysis for the day, monitoring resource Material Indicators said, “Bitcoin is struggling to retrace its weekend high. “As the monthly candle close approaches tomorrow, the bulls and bears are fighting to control the momentum.” Meanwhile, an accompanying chart shows that bid liquidity is strengthening in the active trading range on Binance.
BTC order book data for Binance / Source: Material IndicatorsPopular trader Daan Crypto Trades argues that liquidity represents genuine interest in BTC rather than forming part of an order book “fraud.”
#Bitcoin $22M+ Spot Buy Wall still sitting between $27.4-27.5K.
Some of the bids got filled yesterday already.
Looks to be genuine orders that want to get filled. pic.twitter.com/IjgMrnss8M
— Daan Crypto Trades (@DaanCrypto) May 30, 2023
Other trader Jelle is also optimistic. Accordingly, the trader says that May 31 is a potentially good date for the bulls. In this context, the trader makes the following statement:
I quite like how Bitcoin is shaping up here. It still holds the key support and seems to form a small hidden bullish divergence here.
Additional shares include the scope of a potential triple breakout for Bitcoin when it comes to market structures.
#Bitcoin is at the cusp of breaking out from three different bullish patterns.
Just a little bit higher, before these all confirm a move higher.
Who's ready? pic.twitter.com/8yZnTnn6xx
— Jelle (@CryptoJelleNL) May 30, 2023
The CME gap is growing!
Meanwhile, on the radar was the emerging gap in the CME futures markets and Bitcoin’s potential to “fill” that gap.
CME Bitcoin futures 1-hour candlestick chart / Source: TradingViewThe upward move over the weekend left a gap between $26,900 and $27,850 on the futures chart. Thus, it provided a potential short-term bearish target for the spot Bitcoin price. Popular trader Justin Bennett included this scenario in part of his price analysis for the day. In this context, the trader suggested that the oscillatory behavior will continue.
Nice bounce from $BTC so far, exactly as explained in Monday's blog post. 👌
This is your range for now. Get above $28,250 and we likely see a liquidity grab toward $29k and $30k.
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 provide a summary of other unfilled CME vacancies for the year. Accordingly, the trader said, “Note: The gaps were not filled immediately. But it should not be neglected either,” he says.
Bitcoin futures chart with gaps / Source: Mikybull CryptoBitcoin price prediction from Henrik Zeberg
Famous trader Henrik Zeberg recently shared an optimistic forecast for Bitcoin. The trader pointed to the potential for a significant price increase in the near future. Zeberg’s bullish outlook came after a report that highlighted several factors keeping Bitcoin below $30,000.
BTC price / Source: CoinMarketCapAccording to the report, several hurdles have blocked Bitcoin’s upward momentum, including the strength of the US Dollar Index (DXY), interest rate jumps, and concerns over potential Federal Reserve rate hikes. However, the report indicates a possible turning point is on the horizon.
The report specifically questions whether the performance of Nasdaq can provide insight into the upcoming Bitcoin rally. It identifies the potential for a reversal in DXY at levels 106-107 and a change in interest rates. It is possible that this will contribute to positive emotions in both traditional stocks and the crypto market. The report also mentions that the prevailing risk sentiment in equities could spill over into the crypto space as uncertainties surrounding the debt ceiling ease.
The expectation of a return in the market has led many investors to adopt a wait-and-see approach. It also allowed him to buy time before making important moves. However, the report states that under current market conditions, it is unlikely for BTC to drop below the $27,000 level. It also encourages investors to strategically take positions in narrative-driven altcoins.
