Bitcoin’s journey through the cryptocurrency markets this week has been anything but dull. As of May 19, 2025, the flagship digital asset has once again captured the spotlight by breaking through its previous trading confines, touching a high of $107,000 before retreating back to familiar territory around $103,000. This fluctuation has raised eyebrows among traders and analysts alike, as the market attempts to discern whether this is merely a “fakeout” or a precursor to new all-time highs.
The Liquidity Dance
The Bitcoin market executed a deft liquidity maneuver over the weekend, with prices briefly soaring to multimonth highs before staging a rapid 4% correction. This move, according to data from Cointelegraph Markets Pro and TradingView, was classic in its execution—squeezing out short positions and ensnaring latecomers to the long side in a textbook liquidity grab. Crypto analyst Michaël van de Poppe commented on the platform X, “Classic liquidity trap above the recent high and reversal downwards,” hinting that similar patterns might occur around the $100,000 mark before Bitcoin can decisively break past its all-time highs.
Adding to this narrative, CrypNuevo, another trader, expressed caution about entering positions above the $100,000 threshold, citing current resistance levels as a risk. “From a risk management perspective, I don’t see it worth it to go long right now at market price,” he noted, suggesting that clearing these hurdles would present more favorable entry points. This sentiment echoes previous market movements, such as when Bitcoin surged past $94,000 amid growing institutional interest and optimism.
Record Weekly Close and Market Sentiment
Despite the swift correction, Bitcoin enthusiasts found cause for celebration as the cryptocurrency notched its highest weekly close in history, coming in around $106,500. This milestone was swiftly followed by the market’s characteristic volatility, yet traders remain optimistic. “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,” stated trader Jelle on X, reflecting the buoyant sentiment.
Chad, another market observer, pointed out that Bitcoin closed above a key Fibonacci extension level for two consecutive weeks, a feat not previously observed. Meanwhile, Swissblock Technologies underscored the importance of defending the current trading range to sustain the bullish momentum. This aligns with past events where Bitcoin jumped above $97K as traders remained hopeful about a potential U.S.-China trade deal.
Macro Factors and Market Correlation
The broader economic landscape continues to play a pivotal role in shaping Bitcoin’s trajectory. This week, attention turns to the Federal Reserve and US trade negotiations, particularly following Treasury Secretary Scott Bessent’s comments on potential tariffs for non-compliant trade partners. The Moody’s downgrade of US credit has already rippled through traditional markets, but crypto appears to be charting its own course.
“Crypto is loving the Moody’s downgrade: Bitcoin is now 4% away from a new all time high and up over +40% since its April low,” The Kobeissi Letter noted. As the dollar faces pressure, Bitcoin and other altcoins might find themselves in an advantageous position, particularly if interest rate cuts remain off the table until later in the year.
The Volume Delta Indicator
In the midst of these market dynamics, the volume delta on exchanges like Binance has emerged as a key indicator of market strength. CryptoQuant analyst Darkfost highlighted the significance of the spot net volume delta turning positive post-correction, suggesting a resurgence in buying activity. However, he cautioned that rapid increases in spot volumes could signal local market tops, urging traders to remain vigilant.
“Tracking spot volumes can provide valuable insights into investor behavior, especially on Binance, which handles the largest share of global trading,” Darkfost explained, emphasizing the importance of this metric in navigating Bitcoin’s volatile landscape.
As Bitcoin continues to oscillate within its current range, market watchers are left pondering whether this recent breakout is a fleeting moment or the beginning of a larger narrative. With macroeconomic factors and market indicators offering mixed signals, the path forward remains uncertain—keeping traders on their toes and the crypto community abuzz with speculation.
Source
This article is based on: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
