Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000. BTC price action grabs liquidity before reve
Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000.
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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?
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The May 18 daily and weekly close nonetheless became Bitcoin’s highest ever.
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US trade deals remain high on the list of macro volatility triggers for risk asset traders this week.
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Crypto’s correlation with stocks paints a mixed picture, adding to uncertainty over how macro developments will influence Bitcoin and altcoins going forward.
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Bitcoin exchange volume delta becomes a key ingredient in assessing the staying power of BTC price breakouts, per analysis from CryptoQuant.
A liquidity grab for the ages
Bitcoin price action delivered some “classic” moves around the May 18 weekly close.
A 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.
The spike took out a block of liquidity nestled close to all-time highs, with BTC/USD performing a liquidity “grab” designed to first squeeze out shorts and then trap late longs.
“Classic liquidity trap above the recent high and reversal downwards,” crypto trader, analyst and entrepreneur Michaël van de Poppe responded on X.
“I 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.”
Data 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.
Total crypto liquidations in the 24 hours to the time of writing were $673 million.
Discussing 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.
“From a risk management perspective, I don’t see it worth it to go long right now at market price,” he wrote in an X thread prior to the weekly close volatility.
“Yes, 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.”
CrypNuevo 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.
This weekend, another prediction called for $116,000 to arrive in the coming days.
Bitcoin scores highest weekly close in history
It may not have lasted long, but Bitcoin’s latest weekly close has become the highest ever recorded.
Coming in at around $106,500, the weekly candle also allowed for a new all-time high daily close.
Despite the subsequent correction of nearly 4%, traders are keen to celebrate what they see as an underlying desire for the market to push higher.
Highest weekly close ever for Bitcoin.
The trend is your friend! pic.twitter.com/p4td9Ab4R8
— CryptoGoos (@crypto_goos) May 19, 2025
“Highest 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,” trader Jelle argued in an X analysis.
Fellow trader Chad noted that BTC/USD has also managed to close above a key Fibonacci extension level for two consecutive weeks — a first of its kind.
Private wealth manager Swissblock Technologies saw one key ingredient to bullish continuation.
“Bitcoin flirted with $107K, grabbed liquidity above $104K–$106K but failed to hold,” it summarized in its latest X reaction.
“Back in the range, support holding, for now. Bulls have one job: defend this range.”
CoinGlass 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.
US trade war rumbles on as Bitcoin ignores rate-cut odds
A lack of crucial macroeconomic data reports this week places the focus on the Federal Reserve and US trade deals.
In 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 “good faith.”
News of a deal with China caused a snap reaction for stocks earlier this month, with traders feeling a sense of relief.
This may not be so evident as the week begins, thanks to the recent US credit downgrade by Moody’s,…
cointelegraph.com