Despite a last-minute price dip of 3%, Bitcoin recorded its most robust performance in May since 2019. Steady trading for Bitcoin at $67,500 as June approached gave the bulls a final chance to tackle key resistance, but Bitcoin recorded an 11% gain for the month nonetheless. Weekly lows due to concerns over a Japanese cryptocurrency exchange hack and expected predatory moves by traders near the end of the month affected trading patterns.
The United States macroeconomic data, reflected in the Personal Consumption Expenditures (PCE) index, failed to significantly boost market sentiment even though it marginally exceeded expectations, indicating a slowing down of inflation. Popular trader Skew indicated that price retracements were driven heavily by unwinding into the event itself.
Bitcoin managed to bounce back at approximately $66,650, leading to a close that made May a robust month with an 11% gain. Michaël van de Poppe, founder of trading firm MNTrading, noted that the markets were gradually gearing up for further upward momentum and that the crucial area to hold was at $66k.
In analysing the recent BTC price volatility, trading intelligence provider Material Indicators pointed out that Bitcoin whales, or large volume traders, were to blame. These traders manipulated liquidity up until the month’s end, which resulted in a failed attempt to reinforce a $69,000 support. Material Indicators co-founder, Keith Alan, explained that these moves represented “Killer Whale Games in action.” As a result, support at $67k is under strain, and liquidity for numbers above $65k is yet to be bolstered. Despite these challenges, Bitcoin’s performance remains buoyant.