Wednesday, June 12, 2024

Bitcoin Posts Strongest May Since 2019, But Ends Month With Small Drop

This post was originally published on cryptonewsfarm.com

Bitcoin Ends May Strong Despite Late-Month Volatility

Bitcoin started June at $67,500, missing a chance to break through a key resistance level due to some last-minute price swings. However, the world’s most popular cryptocurrency still managed to close the month with an 11% gain.

Holding Onto Gains

Data from Cointelegraph Markets Pro and TradingView showed that the price of Bitcoin (BTC) remained flat at the end of May after recovering from a dip earlier in the week. This dip was caused by two main factors: concerns about a hack at a Japanese cryptocurrency exchange and “aggressive” moves by some traders as the month approached its close.

News from the United States about inflation, in the form of the Personal Consumption Expenditures (PCE) index, didn’t significantly impact Bitcoin’s price. While the data came in slightly better than expected, it still showed that inflation is slowing down.

A popular trader named Skew commented on the situation on X (formerly Twitter) at the time, saying that the price had mostly returned to where it was before the PCE data release due to traders adjusting their positions before the event. He also highlighted the importance of watching how the cryptocurrency market, especially in developing countries, reacts in the coming days. According to Skew, higher trading activity and demand for Bitcoin are needed for the price to go up further. Otherwise, some investors might be tempted to buy Bitcoin out of fear of missing out (FOMO), which could lead to a price drop later.

In the end, Bitcoin reversed course around $66,650 and closed the month with an 11% gain. Michaël van de Poppe, the founder and CEO of trading firm MNTrading, summarized the situation by saying that Bitcoin is consolidating well and the market is preparing for further upward movement. He also emphasized the importance of Bitcoin holding above $66,000.

“Killer Whale Games” and Price Volatility

Looking closer at the recent Bitcoin price swings, a trading research firm called Material Indicators believes that large-volume traders, also known as “whales,” were the main culprits behind the volatility.

According to Material Indicators, these whales manipulated the market by adding and removing large amounts of Bitcoin buy and sell orders around the monthly close. This ultimately led to a failed attempt to push the price above $69,000, which would have been considered a significant win for Bitcoin at the end of May.

A post on X explained that a “killer whale” flooded the market with sell orders for Bitcoin, causing the price to drop sharply above $69,000. The post also stated that support at $67,000 was then tested, and no significant new buy orders have been seen above $65,000, suggesting that the market is still experiencing some volatility.

A chart accompanying the post showed the levels of buy and sell orders for Bitcoin on the Binance exchange, along with the trading activity of different whale groups. Material Indicators co-founder, Keith Alan, described these actions as “killer whale games in action.”

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Author: Sb

Read Also: Crypto Community Stands with CZ: Binance Founder Begins Jail Term

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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