Bitcoin price rejected at $28K, analysts watching for CME futures gap dip
Bitcoin (BTC) experienced a decline during the opening of Wall Street on May 30, despite the return of United States equities failing to boost its performance.
Bitcoin pauses into monthly close
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD was heading towards $27,700 and briefly spiked above the $28,000 mark. However, it encountered resistance below local highs from around the weekly close, and stocks also treaded water after the opening bell.
Excitement surrounding a possible deal to raise the U.S. debt ceiling, which had previously boosted cryptocurrency, also cooled as market participants waited for its first test in Congress.
- BTC price drops, downside target now $23K
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- Bitcoin price lower on Binance Australia due to fiat ramp closure
As monitoring resource Material Indicators summarized in part of its analysis on the day, “Bitcoin has been having a hard time reclaiming the weekend high. With the monthly candle close approaching tomorrow, bulls and bears are fighting to control the momentum.”
“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.
Popular trader Daan Crypto Trades suggested that the 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.
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 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
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 spot price.
Popular trader Justin Bennett included that scenario in part of the day’s price analysis, suggesting range-bound 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, 2023
Fellow trader Mikybull Crypto took the opportunity to present a summary of other unfilled CME gaps for the year, arguing that “note: gaps don’t get filled immediately but they’re not to be neglected.”
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