$107K FAKEOUT OR NEW ALL-TIME HIGHS? 5 THINGS TO KNOW IN BITCOIN THIS WEEK

Bitcoin has been keeping investors on the edge of their seats, kicking off the week with a dramatic breakout from its tight trading range around $103,000.The surge saw Bitcoin (BTC) briefly touching $107,000, igniting hopes of a new all-time high, only to be followed by a swift and brutal 4% correction within hours. TRXUSD TRON $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week. Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000This whipsaw action has left many wondering: Was this a mere ""fakeout,"" a classic liquidity grab designed to trap late longs and squeeze out shorts, or a genuine prelude to a sustained rally towards uncharted territory?This week promises to be crucial in determining Bitcoin's trajectory, with several key factors at play.We'll delve into the technical analysis, dissect market sentiment, examine macroeconomic influences, and explore what seasoned traders are watching to navigate this volatile landscape. Bitcoin looks exhausted As Cointelegraph reported, various market participants have been expecting a significant comedown this month. Related: $107K fakeout or new all-time highs? 5 thingsBuckle up as we explore the five critical things you need to know about Bitcoin this week, helping you make informed decisions amidst the uncertainty.

1.The $107K Spike: Liquidity Grab or Legitimate Breakout?

The rapid ascent to $107,000 followed by an equally rapid descent has all the hallmarks of a classic liquidity grab. Bitcoin sold off from $107,000 due to profit taking, and the recovery back to $105,000 is a sign that multiple bidders expect higher prices in the near future.These events are designed to trigger stop-loss orders and liquidate leveraged positions, creating volatility and profit opportunities for sophisticated traders.According to Michaël van de Poppe, a well-known crypto trader and analyst, this price action represents a ""classic liquidity trap above the recent high and reversal downwards."" Essentially, the market briefly teased a breakout to attract buyers, only to pull the rug out from under them.

What is a Liquidity Grab? A liquidity grab is a market manipulation tactic where the price of an asset is temporarily pushed beyond a key level (like a previous high or low) to trigger stop-loss orders and liquidations. 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 reversing to its starting position, liquidating many an emotional trader on the way. A fakeout or a taste of things to come?The May 18 daily and weekly close nonetheless became Bitcoin s highest ever. US trade deals remain high on the list of macroThis creates a sudden surge in volume and often leads to a sharp reversal, benefiting those who orchestrated the move.Think of it like a fishing expedition, where the big players are casting a net to catch unsuspecting traders.

Whether this move was a genuine breakout attempt or a calculated trap remains to be seen. QNTUSD Quant $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000.However, the immediate correction suggests that selling pressure remains strong at these higher levels.The key question is whether bulls can regain control and establish a new support level above the previous resistance.

2.Market Sentiment: Exhaustion or Just a Pause?

Following the surge and subsequent correction, market sentiment is understandably mixed. Driven by increased demand, limited supply, and growing institutional investment, Bitcoin has reached a new all-time high. Bitcoin s surge driven by scarcity, institutional investments, and global economic uncertainty, with forecasts targeting $120K.Some analysts believe that Bitcoin looks ""exhausted,"" suggesting that the recent rally may have run its course. 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 Micha l van de Poppe responded on X.As Cointelegraph reported, many market participants anticipated a significant comedown in May, and the $107,000 fakeout could be the start of that correction.

However, others remain optimistic, pointing to the underlying drivers of Bitcoin's recent surge, including:

• Increased Demand: Institutional and retail interest in Bitcoin continues to grow.
• Limited Supply: The Bitcoin halving event reduces the rate at which new bitcoins are mined, creating scarcity.
• Growing Institutional Investment: Major companies and investment firms are allocating capital to Bitcoin, lending legitimacy to the asset.

The recovery back to around $105,000 after the initial sell-off could be interpreted as a positive sign, suggesting that there are still buyers willing to step in at these levels.As one analyst pointed out, this recovery ""is a sign that multiple bidders expect higher prices in the near future."" Monitoring trading volume and order book activity will be crucial in gauging the true strength of market sentiment.

3.Key Support and Resistance Levels to Watch

Understanding key support and resistance levels is essential for navigating Bitcoin's volatility. 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 reversing to its starting position, liquidating many an emotional trader on the way. A fakeout or a taste of things to come? The May 18 daily and weekly close nonetheless became Bitcoin s highest ever.These levels act as potential areas of price reversal or consolidation.

• Resistance: The immediate resistance lies at the recent high of $107,000.A sustained break above this level would signal a potential continuation of the uptrend.
• Support: Key support levels include $105,000, which has shown to have a good presence of buyers to absorb selling pressure.Below that lies between $90,000 and $103,000, which is a wider range.

Traders often use these levels to set stop-loss orders and profit targets. QNTUSD Quant $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week. Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000A break below a key support level could trigger further selling pressure, while a break above a key resistance level could attract more buyers. Bitcoin s price reached 107,000 USD but subsequently decreased to around 102,000 USD within hours, showcasing market volatility. This represents a liquidity trap, leading many traders to liquidate their positions. US trade dynamics significantly affect Bitcoin s behavior in the market.Keep an eye on these levels to anticipate potential price movements.

Fibonacci Retracement Levels

Another valuable tool for identifying potential support and resistance is Fibonacci retracement levels.These levels are based on the Fibonacci sequence and are often used to predict where the price might retrace after a significant move.Common Fibonacci retracement levels include 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

4. Key takeaways: Bitcoin (BTC) price faced a sharp 4% correction during the Asian trading session on May 19, tumbling from an important level as noted by Glassnode. The data analytics platformMacroeconomic Factors and US Trade Deals

Bitcoin doesn't exist in a vacuum. Bitcoin reaches $107,000 but sees a swift correction, raising questions about new all-time highs. Economic factors like US trade deals and stock correlations affect BTC's future. Crypto investor caution is advised amidst market volatility. (ZHO)Macroeconomic factors, particularly those related to the US economy, can significantly impact its price. $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week The Cointelegraph Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000.Factors such as inflation, interest rates, and trade deals can influence investor sentiment and risk appetite, affecting demand for Bitcoin.

US trade deals, in particular, can have a cascading effect on global markets. Within 50 days, Bitcoin made a new all-time high 98% of the time. Peterson acknowledged that post-2025 gains have been more modest than those before, with an average 8% move giving BTC/USD aUncertainty surrounding these deals can lead to increased volatility and a flight to safety, potentially benefiting Bitcoin as a perceived store of value.Conversely, positive news regarding trade deals could boost risk appetite and lead to a rotation out of Bitcoin and into riskier assets.

Furthermore, Bitcoin's correlation with the stock market is another factor to watch.In recent times, Bitcoin has shown a tendency to move in tandem with stock market indices. Bitcoin reaches $107,000 but sees a swift correction, raising questions about new all-time highs. Economic factors like US trade deals and stock correlations affect BTC's future. Crypto investor caution is advised amidst market volatility. (ITA)Therefore, monitoring the performance of the S&P 500 and other major indices can provide valuable insights into Bitcoin's potential direction.

5.What's Next?Scenarios and Trader Strategies

Given the current market conditions, several scenarios are possible for Bitcoin in the coming weeks. 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.Here are a few potential outcomes and strategies traders might consider:

1. Scenario 1: Continued Uptrend. If Bitcoin can successfully break above the $107,000 resistance level and establish a new support level, it could signal the start of a sustained rally towards new all-time highs. Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week Support targets include everywhere from $105,000 to $90,000, with proponents seeing little fuel left in theIn this scenario, traders might consider taking long positions with tight stop-loss orders to manage risk.
2. Scenario 2: Consolidation. Bitcoin could enter a period of consolidation, trading within a defined range between support and resistance levels.In this scenario, traders might consider using range-bound trading strategies, buying at support and selling at resistance.
3. Scenario 3: Deeper Correction. If selling pressure intensifies, Bitcoin could experience a deeper correction, potentially testing lower support levels.In this scenario, traders might consider taking short positions or waiting for a more favorable entry point before buying.

Risk Management is Key

Regardless of the scenario, risk management is paramount.Always use stop-loss orders to limit potential losses, and never invest more than you can afford to lose. QNTUSD Quant $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week 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 reversing to its starting position, liquidating mDiversifying your portfolio and avoiding emotional trading decisions are also crucial for long-term success in the crypto market.

Actionable Advice:

• Stay Informed: Keep up-to-date with the latest market news, analysis, and technical indicators.
• Use Technical Analysis: Employ technical analysis tools to identify potential support and resistance levels, as well as entry and exit points.
• Manage Risk: Always use stop-loss orders and avoid over-leveraging your positions.
• Control Emotions: Make rational trading decisions based on data and analysis, rather than fear or greed.
• Consider DCA: Dollar-Cost Averaging (DCA) involves investing a fixed amount of money at regular intervals, regardless of the price. BTCUSD Bitcoin $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week 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 reversing to its starting position, liquidating mThis strategy can help reduce the impact of volatility and potentially improve your average purchase price over time.

Understanding Bitcoin's Volatility

Bitcoin is known for its volatility, and understanding this characteristic is crucial for investors.Price swings can be dramatic and sudden, influenced by factors such as:

• Market Sentiment: News, social media trends, and overall investor confidence can quickly shift the price.
• Regulatory News: Announcements from governments regarding Bitcoin regulation can have a significant impact.
• Technological Developments: Innovations in blockchain technology and updates to the Bitcoin protocol can influence investor perception.
• Whale Activity: Large transactions by individuals or entities holding significant amounts of Bitcoin (known as ""whales"") can cause price fluctuations.

Common Questions About Bitcoin

Is Bitcoin a Good Investment?

Whether Bitcoin is a good investment depends on your individual circumstances, risk tolerance, and investment goals.Bitcoin has the potential for high returns, but it also carries significant risk.It's important to do your research and consult with a financial advisor before investing.

How Can I Buy Bitcoin?

Bitcoin can be purchased through various cryptocurrency exchanges, brokers, and peer-to-peer platforms. $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week cointelegraph.com 19 m cointelegraph.comSome popular exchanges include Coinbase, Binance, and Kraken.Before buying Bitcoin, make sure to choose a reputable platform and understand the associated fees and security measures.

How Can I Store Bitcoin Securely?

Bitcoin can be stored in various types of wallets, including:

• Software Wallets: These wallets are installed on your computer or mobile device.
• Hardware Wallets: These are physical devices that store your private keys offline.
• Exchange Wallets: These wallets are provided by cryptocurrency exchanges.

For maximum security, it's recommended to use a hardware wallet and store your private keys offline.

Bitcoin: The Road Ahead

While the short-term outlook for Bitcoin remains uncertain, many analysts are optimistic about its long-term potential. $107K fakeout or new all-time highs? 5 things to know in Bitcoin this weekDriven by scarcity, institutional investments, and global economic uncertainty, some forecasts target $120,000 and beyond. 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.Bitcoin's potential as a hedge against inflation and a store of value continues to attract investors, but, like any asset, carries risk.

Conclusion: Navigating the Bitcoin Landscape

The recent $107K fakeout serves as a stark reminder of Bitcoin's volatility and the importance of careful risk management. Bitcoin smashes $107K to set a new ATH! Will the rally continue, or could a pullback be looming? Explore the key scenarios and what traders should watch.Whether this was a brief detour or a sign of a larger correction remains to be seen. Bitcoin (BTC) starts a new week with a long-awaited breakout from a narrow trading range around $103,000. BTC price action grabsBy understanding the key factors driving Bitcoin's price, including market sentiment, macroeconomic influences, and technical indicators, investors can make more informed decisions and navigate the market with greater confidence.Remember to stay informed, manage your risk, and control your emotions.The road ahead for Bitcoin promises to be exciting, but also challenging.Understanding the possibility of both $107K fakeouts and eventual new all-time highs is crucial to your investment strategy.Good luck and trade responsibly!