Bitcoin price hits $27.2K, but new analysis warns of ‘potential’ for more losses

Bitcoin (BTC) sought recovery of $27,000 on the May 14 weekly close as volatility increased in the few hours ahead.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

BTC price up more than 7% in two days

Data from Cointelegraph Markets Pro and trading view BTC/USD rose to $27,200 on Bitstamp.

That’s the highest in several days, with the performance reflecting gains of nearly 7.5% versus local lows from the week’s last Wall Street trading session.

Michael van de Poppe, an optimist and founder and CEO of trading firm Eight, said: “Strong movements on bitcoin surpassed all lows in recent moves and grinded back to $27.2K.” reacted,

“Patience, flipping $27.2K is the first serious trigger for continuation to the upside. In that case, a temporary bottom close and possible new highs of $36-42K are still possible.

BTC/USD annotated chart. Source: Michael van de Poppe/Twitter

Popular trader Dan CryptoTrades reported that there was now a possibility for the CME bitcoin futures markets to “gap up” on May 15.

“If BTC holds at current prices, it will open tomorrow with a CME gap. These gaps have a tendency to fill, especially during a widening environment,” he said Said twitter followers.

“It is good to note how during strong trends (up and down), these gaps are more likely to remain open.”

CME bitcoin futures annotated chart. Source: Dan Crypto Trades/Twitter

Earlier in the weekend, Cointelegraph reported on the general cautious tone being adopted by market participants, including Van de Poppe, who was seeking a swift recapture of the $27,000 level before considering a long position. .

Meanwhile, in an update on the current status of the Binance order book, monitoring resource Content Indicators noted that liquidity is rising all around, with bid liquidity at $25,400 down by almost $17 million.

Bitcoin Bulls Face Stiff Weekly Challenge

Looking into the weekly close, traders and analyst Rekt Capital were less positive on the immediate outlook.

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In his analysis for the day, he warned that a close to $27,550 or lower puts BTC price at risk of further losses.

He commented on the weekly chart, “A weekly close below $27550 (black) will likely open further downside for the price after it fails to reclaim $28800 as support (orange).”

BTC/USD annotated chart. Source: Rect Capital/Twitter

Additional findings argued that bitcoin may not repeat its 2019 recovery so far this year.

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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.