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Wednesday, May 31, 2023

Bitcoin Price Hits $27,200, But New Analysis Warns Further Losses “Likely”

Bitcoin (BTC) seemed to recoup $27,000 on the weekly shut on May 14 as volatility spiked after hours.

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

BTC value features greater than 7% in two days

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

Its highest stage in a number of days, the yield mirrored features of round 7.5% in opposition to native lows from the final Wall Street buying and selling session of the week.

“Strong moves in Bitcoin as it swept all the lows in recent moves and is back up to $27.2K,” an optimist Michaël van de Poppe, founder and CEO of buying and selling agency Eight, reacted.

“Patience as flipping $27.2K is the first serious trigger for continuation higher. In that case, a near temporary bottom and potentially new highs of $36-42K are still possible.”

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

Popular trader Daan Crypto Trades noted that there was now a possibility of a “gap” showing within the CME Bitcoin futures markets on the May 15 open.

“If BTC holds at current prices, it will open with a CME gap tomorrow. These gaps tend to fill in, especially during a range environment,” he stated. stated Twitter followers.

“It’s good to notice how throughout sturdy traits (up and down), these gaps usually tend to keep open.”

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

Earlier within the weekend, Cointelegraph reported on the overall cautious tone taken by market individuals, with Van de Poppe amongst these calling for a bullish rally to ranges round $27,000 earlier than contemplating lengthy positions.

Meanwhile, in an replace on the present standing of Binance’s order ebook, Material Monitoring Resource Indicators famous liquidity transferring, together with bid liquidity at $25,400 dropping by round $17. tens of millions.

Bitcoin Bulls Face Tough Weekly Challenge

Looking forward to the weekly shut itself, dealer and analyst Rekt Capital was much less optimistic in regards to the fast outlook.

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In the day’s evaluation, he warned {that a} shut of $27,550 or under would put the BTC value vulnerable to additional losses.

“The weekly close below $27,550 (black) would likely mean further downside for price after failing to recapture $28,800 as support (orange),” he commented on the weekly chart.

BTC/USD annotated chart. Source: Rekt Capital/Twitter

The extra findings argued that Bitcoin shouldn’t be more likely to repeat its 2019 rally up to now this 12 months.

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This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to do their very own analysis when making a call.