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Bitcoin (BTC) aimed to reclaim $27,000 as the weekly close approached on May 14, with increased volatility observed after hours.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price rises over 7% in two days
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD surged to $27,200 on Bitstamp.
This marked its highest point in several days, reflecting an increase of approximately 7.5% from the local lows observed during the final Wall Street trading session of the week.
“Significant movements on Bitcoin as it swept all recent lows and gradually rises back to $27.2K,” remarked Michaël van de Poppe, founder and CEO of trading firm Eight.
“Patience, as surpassing $27.2K is the first substantial trigger for upward continuation. In that scenario, we could be close to a temporary bottom & potentially see new highs between $36-42K.”
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter
Notable trader Daan Crypto Trades pointed out that there was a possibility of a “gap” in CME Bitcoin futures markets emerging at the May 15 opening.
“If BTC maintains its current price levels, it will create a CME gap tomorrow. These gaps tend to be filled, particularly in a ranging market,” he informed his Twitter audience.
“It’s important to note that during strong trends (both upward and downward), these gaps are more likely to remain unfilled.”
CME Bitcoin futures annotated chart. Source: Daan Crypto Trades/ Twitter
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Earlier over the weekend, Cointelegraph highlighted the generally cautious sentiment among market participants, with Van de Poppe among those advocating for a bullish reclaiming of levels around $27,000 before considering long positions.
In an update regarding the current state of the Binance order book, monitoring resource Material Indicators observed liquidity fluctuations, noting that bid liquidity at $25,400 had decreased by approximately $17 million.
#FireCharts shows ~$17M was withdrawn from the #BTC buy wall and it doesn’t seem to have been relocated in the order book.
It’s possible it was set as a conditional limit order that won’t show until the price meets their criteria, or it may have been removed from the exchange, or perhaps they… pic.twitter.com/p9cTIs1sJU— Material Indicators (@MI_Algos) May 14, 2023
Bitcoin bulls encounter significant weekly challenge
As the weekly close approached, trader and analyst Rekt Capital expressed a less optimistic view on the immediate outlook.
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In his analysis for the day, he cautioned that a close at $27,550 or lower would put the BTC price at risk of further declines.
“A weekly close below $27,550 (black) would likely indicate more downside for the price after failing to reclaim $28,800 as support (orange),” he noted on the weekly chart.
BTC/USD annotated chart. Source: Rekt Capital/ Twitter
Additional observations suggested that Bitcoin was unlikely to replicate its 2019 recovery during this year.
Recent declines for #BTC have largely confirmed that 2023 is not akin to 2019. A weekly close below $27,350 would likely fully validate this.#Crypto #Bitcoin pic.twitter.com/zWpoHi53aw
— Rekt Capital (@rektcapital) May 14, 2023
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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research prior to making any decisions.
