Bitcoin trader eyes CME gap with $24K BTC price dip target in play

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Bitcoin (BTC) surged to $27,000 on May 16 as traders remained positive about the continuation of the rally.

Bitstamp’s BTC/USD hourly candlestick chart. Source: TradingView

$24,000 BTC Price Still Exists, Traders Say

Cointelegraph Markets Pro and TradingView BTC/USD fell to $26,870 after the daily close, indicating that it is still eyeing the $27,000 mark.

Still lacking direction, traders expected the pair to break out of the tight range or touch above or below more important levels.

For popular trader Crypto Ed, potential targets included a “gap” in CME futures that formed over the weekend.

“It’s in the lower timeframes that the real action is happening. The higher timeframes are less exciting,” he summarized in his latest paper. youtube update On that day.

The bottom differential to CME is between $26,500 and $26,800, just below the overnight low.

CME Bitcoin futures hourly candlestick chart. Source: TradingView

Crypto Ed went on to say that a post-gap rally could push BTC/USD back to the range high of $28,800, but the downside “potential” remains at $24,000.

Other market participants were similarly cautious, with trader Jaquis calling bitcoin “very hard to read” in the current situation.

“My personal take is that there will be weekly continuations and daily breakdowns,” he concluded on Twitter. analysis On that day.

So despite the current drop, higher weekly levels are still possible.

“Important thing to note is that the weekly structure remains bullish and whether it’s from here or a deeper pullback is a bullish trend potential HL that proves otherwise , should lead to a $31,000 break,” Jaquis explained.

Analysts warn of debt ceiling volatility

Elsewhere, the ongoing debt ceiling crisis in the US has increasingly been included in macro considerations.

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Trader Skew suggested the market was already feeling the pressure as the June 1 deadline for a possible default was fast approaching.

“Prices have been lackluster, mainly because the U.S. debt ceiling has increased the likelihood of a crisis, but the June 1 deadline is approaching,” he said. tweeted About the US Dollar Index (DXY).

“The impact will be what the big funds are eyeing (raising or halting) in late May. .”

DXY has traditionally been inversely correlated with BTC’s price performance, though not exclusively, but continued its downtrend the day after its one-week surge.

Hourly candlestick chart of the US dollar index. Source: TradingView

As reported by Cointelegraph, The major macro event of the week will come in the form of a public comment by Federal Reserve Chairman Jerome Powell on May 19th.

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This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.