Bitcoin Rebounds to $110,000 Amid 30% Crash Fears Ahead of Conference

Bitcoin (BTC) experienced a significant price rebound, circling around $110,000 at the May 27 market open. However, concerns over a potential 30% price crash loomed large, particularly in light of the upcoming Bitcoin 2024 Conference in Las Vegas. This event has historically been associated with BTC price weakness, as seen in the 30% decline from $70,000 to $49,000 following the 2024 conference in Nashville.

Market commentators and traders are closely monitoring the situation, with some drawing parallels to the 2024 conference-induced comedown. The event, scheduled for May 27 to 29, features a high-profile speaker lineup, including JD Vance, Michael Saylor, Donald Trump Jr., and Eric Trump. This has led to increased volatility and positioning around headline risk, reminiscent of the sharp spike in 1-day implied volatilities above 90% observed during the 2024 Nashville conference.

According to trading firm QCP Capital, the market memory of the 2024 conference continues to shape current market sentiment. A 30% retracement from current levels would place Bitcoin back at around $77,000, a multimonth bottom set in April. Crypto trader and analyst Michaël van de Poppe echoed this sentiment, noting that corrections of up to 20% are a normal part of the market cycle and should not be a cause for disappointment.

Short-term price action is also being closely watched, with popular trader Daan Crypto Trades using exchange order book liquidity to identify potential targets. He highlighted significant liquidity clusters around $106,000 and from $111,000 upwards, suggesting that these levels could act as magnets for price movements. This analysis is supported by data from monitoring resource CoinGlass, which showed the first chunk of ask liquidity being taken into the start of the US trading session.

Despite the potential for a 30% price crash, analysts stress that BTC price action can and will continue to experience drawdowns of 10-20%. This volatility is seen as a natural part of the market cycle, and traders are advised to conduct their own research and make informed decisions. The Bitcoin 2024 Conference in Las Vegas remains a key event to watch, with its potential impact on BTC prices continuing to be a topic of discussion among market participants.