Bitcoin Price Hits $27.2K, But New Analysis Warns More Losses ‘Likely’
Bitcoin (BTC) sought to regain $27,000 by the May 14 weekly close as after-hours volatility picked up.
BTC rate rises over 7% in two days
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising to $27,200 on Bitstamp.
The result, the highest in several days, reflected gains of about 7.5% compared with local lows from the week’s final Wall Street trading session.
“Strong moves on Bitcoin as it swept all the declines in the last moves and painted back to $27.2K,” an optimistic Michaël van de Poppe, founder and CEO of the trading company Eight, reacted.
“Patience, as turning $27.2K is the first serious trigger for continuation to the upside. If so, a near temporary bottom and potentially new highs at $36-42K are still possible.”
Popular trader Daan Crypto Trades noted that there was now the potential for a “gap” in the CME Bitcoin futures markets at the May 15 open.
“If BTC holds at current prices, it will open up a CME gap tomorrow. These gaps tend to get filled, especially in a volatile environment,” he told Twitter followers.
“It’s good to note how during strong trends (up and down), these holes are more likely to be left open.”
Earlier this weekend, Cointelegraph reported on the overall cautious tone adopted by market participants, with Van de Poppe among those calling for a bullish recovery of levels around $27,000 before considering long positions.
In an update on the current state of the Binance order book, monitoring resource material indicators observed liquidity moving around, along with the $25,400 bid liquidity being thinned by around $17 million.
Bitcoin bulls face a tough weekly challenge
Looking at the weekly close itself, trader and analyst Rekt Capital was less positive about the immediate outlook.
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In analysis on the day, he warned that a close of $27,550 or below would put the BTC price at risk of further losses.
“Weekly close below $27550 (black) is likely to provide more downside for price after failing to reclaim $28800 as support (orange),” he commented on the weekly chart.
Further findings argued that Bitcoin was unlikely to repeat its 2019 recovery so far this year.
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This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
