Bitcoin price rejects at $28K as analysts eye CME futures gap dip
2023.05.30 14:13
Bitcoin (BTC) fell into the May 30 Wall Street open as the return of United States equities failed to boost performance.
BTC/USD 1-hour candle chart on Bitstamp. Source: TradingView
Bitcoin pauses into the monthly close
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $27,700, having briefly spiked above the $28,000 mark.
The pair encountered resistance below its local highs from around the weekly close, and stocks also treaded water after the opening bell.
The excitement around a possible deal to raise the U.S. debt ceiling, which had boosted crypto previously, also cooled as market participants waited for its first test in Congress.
“Bitcoin has been having a hard time reclaiming the weekend high,” monitoring resource Material Indicators summarized in part of an analysis on the day.
“With the Monthly candle close approaching tomorrow, bulls and bears are fighting to control the momentum.”
An accompanying chart of the BTC/USD on Binance showed strengthening bid liquidity in the active trading range.
BTC/USD order book data for Binance. Source: Material Indicators/Twitter
Popular trader Daan Crypto Trades suggested that liquidity represented genuine interest in BTC, rather than forming part of an order book “spoof.”
#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
Fellow trader Jelle was also optimistic, offering May 31 as a potentially good date for bulls.
“Quite liking how Bitcoin shapes up here. Still holding the key support, and looks like we’re building a little hidden bullish divergence here,” part of Twitter commentary stated.
Additional posts included coverage 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
CME gap looms large
On the radar, meanwhile, was the looming gap in CME futures markets and Bitcoin’s potential to “fill” it next.
Related: Mining difficulty passes 50 trillion — 5 things to know in Bitcoin this week
CME Bitcoin futures 1-hour candle chart. Source: TradingView
The weekend’s upside left a blank space on the futures chart between $26,900 and $27,850, providing a potential short-term downside target for the spot price.
Popular trader Justin Bennett included that scenario in part of the day’s price analysis, suggesting rangebound behavior would 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 pic.twitter.com/U5BnJgzvzm
— Justin Bennett (@JustinBennettFX) May 30, 2023
Fellow trader Mikybull Crypto, meanwhile, took the opportunity to present a summary of other unfilled CME gaps for the year.
“Note: gaps don’t get filled immediately but they’re not to be neglected,” he argued.
Bitcoin futures chart with gaps shown. Source: Mikybull Crypto/Twitter
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
