Bitcoin (BTC) recovered from a major dip at the May 26 Wall Street open as the market quickly exhausted buy support.
Bitcoin volume surges with more expected
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to $28,000 on Bitstamp — its lowest since May 12 and the Terra LUNA implosion.
Progress had already accelerated to the downside on the day, this culminating in a liquidity grab that sent 24-hour BTC liquidations to $117 million.
A subsequent bounce saw a recovery above $29,000, where Bitcoin traded at the time of writing.
For Cointelegraph contributor Michaël van de Poppe, the swoop to fill bids was enough to ensure some fresh upside.
Now we’re good to go up as all the liquidity is taken on the downside.
Let’s go!
— Michaël van de Poppe (@CryptoMichNL) May 26, 2022
He added that his existing targets for BTC/USD — $32,800 and $35,000 — remained in force.
Analyzing order book data, meanwhile, on-chain monitoring resource Material Indicators warned that given the thin liquidity remaining at lower levels, a future dip could encounter less resistance.
“We are seeing A LOT of Bitcoin liquidity changing hands today. Everywhere a bid wall appears, it gets absorbed,” it told Twitter followers alongside a chart from major exchange Binance.
“Currently there are no more huge bid walls and there is only ~$122M between $28k – $25k. Expecting to see more BTC move on chain.”
Fellow trading account Il Capo of Crypto, continuing a conservative outlook on near-term price action, predicted that the current bounce would be the “last bull trap” before a return to $25,000 based on order book performance.
May 26 thus stood out from other trading days during the week thanks to volume returning to BTC/USD markets. As Cointelegraph reported, its absence was becoming a source of…
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