Bitcoin News: Bitcoin Price Volatility Returns as CME Futures Open Sparks Liquidity Sweep

Bitcoin (BTC) witnessed significant price volatility on Sunday, May 19, during the opening of CME Bitcoin futures at 23:00 UTC, briefly spiking to $107,000 before sharply retreating to $102,000. The movement, which cleared liquidity on both sides of the order book, suggests increasing pressure around key resistance levels and raises the potential for a breakout toward a new all-time high.CME Futures Lead Sunday Volatility Amid Thin LiquiditySunday evening volatility in the crypto market is a recurring trend, typically coinciding with the weekly opening of Chicago Mercantile Exchange (CME) Bitcoin futures. This week's episode, however, differed in one key respect—price action was led by CME, signaling the influence of institutional traders rather than retail crypto participants.Unlike recent weeks, the usual CME gap—a discrepancy between Friday’s closing and Sunday’s opening—was absent. Instead, BTC whipsawed within a $5,000 range, resulting in a swift liquidation of long and short positions. Analysts interpret this as an inflection point, with market depth now skewed toward the upside.Market Depth Analysis: Resistance Thin Above $107KAccording to aggregated order book data, liquidity between $107,000 and $110,000 remains thin, while substantial buy-side interest persists around $100,000. This imbalance suggests that an upward breakout may face minimal resistance, allowing for a potential rally toward new record highs if triggered by a strong catalyst.At the same time, some analysts caution that the sudden price movement may have been the result of a stop-loss sweep. This tactic is commonly used to trigger liquidations and create favorable entry points for new short positions by driving up price temporarily.Strategic Positioning: New Shorts at $107K May BackfireThe recent price spike to $107,000 may have lured short traders into opening positions, placing stop-loss levels above $110,000. Should bullish momentum return, these stop losses could be triggered en masse, further fueling an upward thrust through price acceleration via forced buybacks.While short-term movements remain speculative, the underlying market structure and diminished resistance above $107,000 increase the likelihood of a decisive move—either driven by market fundamentals or an external catalyst.