Bitcoin (BTC) surged back to $63,000 on May 10 as the amount of available liquidity increased to over $100 million. The BTC/USD pair reached local highs of $63,876 on Bitstamp before entering a consolidation phase. Despite the hot US unemployment figures, Bitcoin had experienced lows below $61,000. Material Indicators, a trading resource, observed a significant accumulation of ask liquidity just above the spot price, totaling more than $100 million between $63,000 and $65,000. Material Indicators emphasized that historically, the side with the highest concentration of liquidity tends to come out on top in these intra-trend battles.
Material Indicators co-founder Keith Alan conducted an in-depth analysis of potential support levels in the event of another downward slump. He identified the historical consolidation range of $58,000 to $60,000 as the initial targets. Alan also highlighted the importance of the 21-week simple moving average (SMA), which currently stands at $56,127. If this level fails to hold, $52,000 could come into play as the next support level. Alan noted that a drop to $52,000 would represent a 30% correction from the all-time high. However, he mentioned that bid liquidity has been shifting upward, at least for now, as evidenced by the movement of support from the $58,000 range to $58,000.
Popular trader and analyst Rekt Capital stated that Bitcoin is currently maintaining the range low as support, following a downside wick from the previous week. He compared the current BTC price moves to the block subsidy halving that occurred in April, suggesting that this year’s event does not fundamentally differ from previous halvings. Rekt Capital’s chart provided further context for BTC price movements.
It is important to note that this article does not offer investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.