Bitcoin Grapples With $60,000 Support as Post-Halving 'Danger Zone' Nears End
Summary:
In the daily close on May 10, Bitcoin (BTC) tested a $60,000 support level. Intraday lows of BTC dipped to $60,190, with unsuccessful attempts to secure the $63,000 levels. Analysts offer varying reasons for the drop, with speculated institutional influence keeping Bitcoin from a weekend breakout. Noted trader Rekt Capital indicated the end of a current downward trend, following the usual drop that occurs weeks after a halving. The official end to this "danger zone" is expected in two days.
In its daily close on May 10, Bitcoin (BTC) grappled with support at $60,000 as the usual post-halving "danger zone" unnerved investors. The intraday lows for BTC price dipped to $60,190 on Bitstamp, according to data from TradingView and Cointelegraph Markets Pro. An abrupt tumble undermined efforts to secure the $63,000 levels, with varying interpretations regarding its catalyst.
In his most recent market analysis on X (previously Twitter), noted trader Skew stated in part that the monthly open had been swept again along with monthly buyers. He suggested the present situation is ideal for the bulls to reverse this downtrend, with the critical range being between $60.8K - $61K.
Trading resource, Material Indicators speculated that high-volume institutional actors could be influencing these moves. They suggested via a post on X that an institutional entity might not wish for a Bitcoin breakout over the weekend when the BTC ETF market is closed. This post included a chart featuring order book liquidity on Binance, the leading global exchange, highlighting a recent addition around $62,500 which was speculated might be moved after the weekly close.
In a subsequent update on the BTC price trend following the block subsidy halving last month, renowned trader and analyst Rekt Capital signaled an end to the current weakness. Post-halving, a decline in the BTC/USD value typically occurs over the subsequent weeks, and this "danger zone" appears to be closing. Rekt Capital had projected significant downside for Bitcoin within a two-week period at the end of April - a prediction that materialized with a plunge to a two-month low of $56,500.
He noted that in terms of price, the post-halving "danger zone" had been met since Bitcoin had swiftly dipped below the Re-Accumulation Range Low similar to 2016. However, from a time perspective, he indicated that the "danger zone" will only officially close in two days.
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Published At
5/11/2024 3:21:17 PM
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