Bitcoin price rejects at $28K as analysts eye CME futures gap dip
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: TradingViewBitcoin pauses into 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.
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 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/ TwitterPopular trader Daan Crypto Trades suggested that 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, 2023Fellow 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, 2023CME 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: TradingViewThe 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 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 https://t.co/kFabrgykZH pic.twitter.com/U5BnJgzvzm
— Justin Bennett (@JustinBennettFX) May 30, 2023Fellow 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/ TwitterMagazine: AI Eye: 25K traders bet on ChatGPT’s stock picks, AI sucks at dice throws, and more
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