Bitcoin (BTC) held a snap rebound on May 18 as analysts hoped that further upside would come next.
BTC price sustains knee-jerk move higher
The pair had made swift gains toward the prior day’s Wall Street open, these topping out at 3.5% versus the day’s lows.
Amid changing signals on exchange order books, popular trader Skew was hopeful for continuation.
“Price swept the pre-emptive swing low, which was enough liquidity to push up higher,” he summarized in part of Twitter analysis.
Skew continued that while macro conditions were overall causing friction for BTC price performance, largest stablecoin Tether pledging regular BTC buys should be a “positive headwind.”
Cumulative volume delta (CVD) meanwhile showed increasing momentum in a further sign that Bitcoin price might sustain its newfound strength.
“Looking for sustained buying momentum by spot else scalp short,” Skew added.
On-chain monitoring resource Material Indicators tracked the action on the Binance order book, with the price uptick coinciding with an increase in volume from the largest class of Bitcoin whales.
If you’ve been following for more than a minute, you’ve seen me say that Purple whales have historically had the most influence over Bitcoin PA. Here’s a text book illustration of that on the W chart.
— Material Indicators (@MI_Algos) May 17, 2023
As ever, not everyone was convinced about the uptick’s longevity. Among them was popular trading account TraderSZ, which began the day closing out a long BTC position.
“Think the bounce is done,” part of accompanying commentary stated, anticipating a return to downside.
Bottom “might be in” for Bitcoin price correction
Zooming out, meanwhile, fellow trader Credible Crypto revealed a belief that a more pronounced return to upside could come within the next month.
“How much longer till expansion and is the bottom in? 25k’s tested, liq below us taken, bottom for this correction MIGHT be in but need to see how PA develops over the coming days. While we can’t rule out a flush lower yet, developing PA will give us some clues to work with,” part of a tweet on the day explained.
Credible Crypto uploaded two charts with trend lines worth noting, adding that the upper one should hold as support, with BTC/USD then going higher.
“I expect that blue dotted trendline on the right to hold which would mean less than 30 days for this sideways phase to complete and the next move up to begin,” he continued, describing the move’s character as “absolutely explosive.”
This 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.