Bitcoin Trader Eyes CME Gap With $24K BTC Price Plunge Target

Bitcoin (BTC) soared to $27,000 on May 16 as traders were bullish about the continuation of the uptrend.

Trader Says $24,000 BTC Price Still in Play

Data from Cointelegraph Markets Pro and trading view It showed that BTC/USD is still focused on the $27,000 mark, following a drop to $26,870 on the daily close.

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

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

“It is on a really short time frame where the action happens now; high time frame is not really exciting,” he summarized in his latest youtube update Same day

To the downside, the CME has a gap between $26,500 and $26,800, which is just below overnight lows.

CryptoAd continued to say that a post-gap bounce could take BTC/USD back to the high of its range at $28,800, but a downside “probability” remained in play at $24,000.

Other market participants were equally cautious, with trader Jackis describing bitcoin as “very difficult to read” under current conditions.

“My personal view is we will have weekly continuation and daily breakdown,” he concluded on Twitter Analysis Same day

Hence, there remains a possibility of a higher move on the weekly time frame despite the current pullback.

“Important to note is that the weekly structure remains bullish and whether from here or a deeper pullback, there is a potential HL in a bullish trend that should lead to a break of 31K,” Zakis explained. Explained.

Analysts warn of volatility in debt ceiling

Elsewhere, macro views began increasingly to include the debt ceiling crisis unfolding in the United States.

Related: Digital Asset Market Shrinks as Fund Outflows Reach $200M: Coinshare

Trader Skew suggested that with the June 1 deadline for a potential default fast approaching, markets were already feeling the pressure.

“Weakening of price action mainly due to the potential looming threat of the US debt ceiling, although the June 1 deadline is getting closer,” he added. Tweeted About the US Dollar Index (DXY).

“The implications will be what large funds are looking for (raised or suspended) at the end of May. Expect increased volatility and decreased liquidity in the coming weeks, especially around the deadline.

The DXY, traditionally but not exclusively inversely correlated with BTC price performance, continued its decline on the day after a week of snap gains.

As Cointelegraph reported, The main macro event of the week comes in the form of public remarks by Federal Reserve Chairman Jerome Powell on May 19.