Source: Cointelegraph.com NewsBitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000.\u00a0<\/p>\n
BTC price action grabs liquidity before reversing to its starting position, liquidating many an emotional trader on the way. A fakeout or a taste of things to come?
\nThe May 18\u00a0 daily and weekly close nonetheless became Bitcoin\u2019s highest ever.
\nUS trade deals remain high on the list of macro volatility triggers for risk asset traders this week.
\nCrypto\u2019s correlation with stocks paints a mixed picture, adding to uncertainty over how macro developments will influence Bitcoin and altcoins going forward.
\nBitcoin exchange volume delta becomes a key ingredient in assessing the staying power of BTC price breakouts, per analysis from CryptoQuant.<\/p>\n
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\nA liquidity grab for the ages
\nBitcoin price action delivered some \u201cclassic\u201d moves around the May 18 weekly close.
\nA trip to new multimonth highs near $107,000 was followed by a 4% correction in a matter of hours, data from Cointelegraph Markets Pro and TradingView shows.
\nBTC\/USD 1-hour chart. Source: Cointelegraph\/TradingViewThe spike took out a block of liquidity nestled close to all-time highs, with BTC\/USD performing a liquidity \u201cgrab\u201d designed to first squeeze out shorts and then trap late longs.
\n\u201cClassic liquidity trap above the recent high and reversal downwards,\u201d crypto trader, analyst and entrepreneur Micha\u00ebl van de Poppe responded on X.\u00a0
\n\u201cI think we’ll do the same at $100K before we’ll start breaking out above the ATHs. Those are the zones to accumulate your Bitcoin.\u201d
\nBTC\/USDT 4-hour chart with RSI data. Source: Micha\u00ebl van de Poppe\/XData from monitoring resource CoinGlass showed ask liquidity being replenished at $107,500, keeping the price from heading higher. The market then took out bid liquidity to $102,000.
\nTotal crypto liquidations in the 24 hours to the time of writing were $673 million.
\nBTC liquidation heatmap. Source: CoinGlassDiscussing the outlook for Bitcoin, trader CrypNuevo was among those arguing for caution instead of entering at any level in the current range above $100,000.
\n\u201cFrom a risk management perspective, I don\u2019t see it worth it to go long right now at market price,\u201d he wrote in an X thread prior to the weekly close volatility.\u00a0
\n\u201cYes, price could go up as the HTF trend suggests but as a trader I look for low risk entries. We’re currently at resistance. Clearing it would make a much more attractive entry.\u201d
\nBTC\/USDT 1-week chart with 50EMA. Source: CrypNuevo\/XCrypNuevo acknowledged that bullish signals on high timeframes remain and highlighted the retest of the 50-week exponential moving average (EMA) in April, which has historically led to new all-time highs.
\nThis weekend, another prediction called for $116,000 to arrive in the coming days.<\/p>\n
Bitcoin scores highest weekly close in history
\nIt may not have lasted long, but Bitcoin\u2019s latest weekly close has become the highest ever recorded.
\nComing in at around $106,500, the weekly candle also allowed for a new all-time high daily close.
\nBTC\/USD 1-week chart. Source: Cointelegraph\/TradingViewDespite the subsequent correction of nearly 4%, traders are keen to celebrate what they see as an underlying desire for the market to push higher.<\/p>\n
Highest weekly close ever for Bitcoin. The trend is your friend! pic.twitter.com\/p4td9Ab4R8\u2014 CryptoGoos (@crypto_goos) May 19, 2025<\/p>\n
\u201cHighest weekly close ever followed by a red start to the week? Yeah – get the low in early, this week likely ends in the green big time,\u201d trader Jelle argued in an X analysis.
\nFellow trader Chad noted that BTC\/USD has also managed to close above a key Fibonacci extension level for two consecutive weeks \u2014 a first of its kind.
\nBTC\/USD 1-week chart with Fibonacci levels. Source: Chad\/XPrivate wealth manager Swissblock Technologies saw one key ingredient to bullish continuation.
\n\u201cBitcoin flirted with $107K, grabbed liquidity above $104K\u2013$106K but failed to hold,\u201d it summarized in its latest X reaction.
\n\u201cBack in the range, support holding, for now. Bulls have one job: defend this range.\u201d
\nBTC price data. Source: Swissblock Technologies\/XCoinGlass showed that May is a highly varied month for BTC price action. Currently, its 10% gains sit in the middle of a wide range of historical outcomes, with under two weeks left until the monthly close.
\nBTC\/USD monthly returns (screenshot). Source: CoinGlassUS trade war rumbles on as Bitcoin ignores rate-cut odds
\nA lack of crucial macroeconomic data reports this week places the focus on the Federal Reserve and US trade deals.
\nIn particular, markets will be looking for positive developments regarding trade ties between the US and its partners. Treasury Secretary Scott Bessent promised to enact new tariffs on those who do not negotiate in \u201cgood faith.\u201d
\nNews of a deal with China caused a snap reaction for stocks earlier this month, with traders feeling a sense of relief.
\nThis may not be so evident as the week begins, thanks to the recent US credit downgrade by Moody\u2019s, wiping 1% off stocks\u2019 futures prior to the first Wall Street open.
\nWith the dollar again under pressure, trading resource The Kobeissi Letter suggested that Bitcoin and altcoins may still benefit in the current climate.
\n\u201cCrypto is loving the Moody\u2019s downgrade: Bitcoin is now 4% away from a new all time high and up over +40% since its April low,\u201d it noted around the weekly close.\u00a0
\n\u201cAs the US Dollar weakens and uncertainty rises, Bitcoin and Gold are thriving. Instability is Bitcoin\u2019s best friend.\u201d
\nUS dollar Index (DXY) 1-day chart. Source: Cointelegraph\/TradingViewCrypto is also increasingly resilient to hawkish cues from the Fed, which has given markets reason to believe that interest rate cuts will not come before September.\u00a0
\nData from CME Group\u2019s FedWatch Tool shows the odds of a cut at the Fed\u2019s upcoming June meeting at just 12%. Jobless claims on May 22 could shift those expectations if the result differs significantly from predictions.
\nFed target rate probabilities (screenshot). Source: CME GroupFed Chair Jerome Powell will deliver the annual Georgetown University Law Center Commencement Address on May 25, but it is unlikely to provide much policy insight.<\/p>\n
Crypto stocks correlation in flux Source: Cointelegraph.com NewsBitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000.\u00a0 BTC price action grabs liquidity before reversing to its starting position,… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129530"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129530"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129530\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129530"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nDiverging reactions to the Moody\u2019s downgrade set the stage for a debate around crypto\u2019s correlation with US stocks.
\nIn its latest analysis, research firm Santiment could not draw a clear conclusion over the two asset classes\u2019 relationship, calling them \u201csomewhat correlated.\u201d
\n\u201cWith the 90-day tariff pause between the US & China Monday, markets remain within striking distance of all-time highs,\u201d it summarized on May 17, referring to the S&P 500, Bitcoin and gold.
\nBitcoin vs. S&P 500 vs. gold. Source: Santiment\/XSeparate findings from blockchain data provider RedStone Oracles drew a distinction between long- and short-term correlation.
\nWhile negative on a rolling seven-day basis, it told Cointelegraph, a 30-day perspective delivers a \u201cvaluable correlation\u201d between Bitcoin and the S&P 500.
\nBitcoin, S&P 500, 30-day rolling correlation, 1-year chart. Source: Redstone OraclesMeanwhile, market participants have aired frustration at crypto\u2019s susceptibility to the same volatility triggers impacting stocks.
\n\u201cIt was a lot more enjoyable when $BTC traded independently of stocks,\u201d commentator IncomeSharks told X followers on May 19.\u00a0
\n\u201cIt seems now it’s just a way for people to trade stock futures during the weekend and mirror what the $SPY is doing during the week.\u201d
\nVolume delta warns over \u201clocal market top\u201d
\nConsidering what it might take to launch Bitcoin back into price discovery, a new analysis looked at exchange order-book behavior.
\nRelated: Bitcoin hitting $220K \u2018reasonable\u2019 in 2025, says gold-based forecast
\nBinance, in particular, was under the microscope as the exchange with the largest spot volumes. Volume delta, onchain analytics platform CryptoQuant said, is a key ingredient in sustained price moves.
\n\u201cAfter the recent market correction, the spot net volume delta on Binance has turned positive again,\u201d contributor Darkfost wrote in a \u201cQuicktake\u201d blog post on May 18.
\n\u201cThis signals that buying activity is picking up on spot markets, but more importantly, that selling pressure has significantly declined, even with BTC trading above $100 000. However, historically, when spot volumes on Binance rise too quickly and too sharply, it has often coincided with local market tops.\u201d
\nBitcoin spot net volume delta. Source: CryptoQuantVolume delta measures the difference in buy and sell pressure across candles, helping assess the underlying strength of bid and ask sides.
\nCryptoQuant suggests that investors throwing caution to the wind around breakouts contributes to unsustainable price spikes, and monitoring volume delta helps avoid disadvantageous market entries.
\n\u201cRather than being a warning sign, rising spot volumes at this point would be encouraging for market strength,\u201d Darkfost continued.\u00a0
\n\u201cTracking spot volumes can provide valuable insights into investor behavior, especially on Binance, which handles the largest share of global trading.\u201d
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"