Last BTC price dip before a $30K breakout? Bitcoin wipes weekend gains
2023.06.01 08:21
Bitcoin (BTC) returned to a key focal point on June 1 as the monthly close delivered disappointment.
BTC/USD 1-day candle chart on Bitstamp. Source: TradingView
BTC price “fills” latest CME futures gap
Data from Cointelegraph Markets Pro and TradingView confirmed a lackluster end to May for BTC/USD, which slid below $27,000.
The pair erased its entire uptick seen over the weekend, coming full circle to act in a familiar range on the day.
This centered on the area immediately below $27,000, Bitcoin frequently visiting since the middle of April.
CME Bitcoin futures 1-hour candle chart. Source: TradingView
In doing so this time around, however, BTC/USD “filled” a gap in CME futures outstanding since the weekend trip higher.
“When these gaps fill, the bottom is usually near,” popular trader Jelle wrote in part of the day’s social media commentary.
An additional post argued that BTC price action would soon break out to $30,000, completing a “falling wedge” construction with waning volatility.
The last dip before this falling wedge breaks out, and sends us back to $30,000.#Bitcoin pic.twitter.com/TE2lMRYj6A
— Jelle (@CryptoJelleNL) June 1, 2023
Despite the gap fill, fellow trader Daan Crypto Trades remained risk-off until a clearer direction became apparent.
“Confluence at the $26750 region with the CME gap as well as the Golden Pocket on the Fibonacci retracement. Will see how price reacts when/if it gets there,” he commented alongside a 1-hour chart.
“Currently not in a place for me to consider any trades.”
BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
Trader Skew likewise got few positive cues from order book composition and trader activity.
“Gap filled now, weak market though,” he summarized on the day.
“To be bullish would be strength above $27.4K & $27.2K (index exchanges).”
Bitcoin “straddling” key liquidity gap
Bitcoin price thus finished May down 7%, data from monitoring resource CoinGlass shows — something of an average performance for a highly varied month.
Related: Bitcoin hodlers exited ‘capitulation’ above $20K, new metric hints
The largest cryptocurrency is so far 5.5% lower in Q2, meanwhile, a stark contrast to Q1 gains of over 70%.
Bitcoin monthly returns chart (screenshot). Source: CoinGlass
Analyzing multiple timeframes, trading suite Decentrader saw little reason to expect an abrupt trend change yet.
Warning of “moderately bearish” or “declining” signals on its proprietary trading instruments, it flagged downside support levels tied to key moving averages (MAs).
These are $26,250, $26,000 and $23,035 for the 200-week, 20-week and 200-day MAs, respectively.
“Liquidity wise, Bitcoin is still straddling. Downside is currently protected by the 200WMA. Upside, all meaningful liquidity is above $30k,” it added in part of a Twitter thread, reiterating findings from co-founder, Philip Swift, the day prior.
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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.
