Bitcoin Rebounds to $63,000 Amidst Rising Overhead Liquidity and Market Optimism
Summary:
On May 10, Bitcoin rebounded to reach $63,000 with a surge in overhead liquidity surpassing $100 million. Despite dips under $61,000, the Bitcoin price action showed improvement. Trading resource, Material Indicators, highlighted increased ask liquidity just above the spot price. Analyst Keith Alan pointed to historical consolidation range of $58k - $60k as support levels if price dips again, and stressed on the relevance of the 21-week simple moving average (SMA). Popular analyst Rekt Capital viewed the current scenario as merely maintaining the Range Low as support, following the previous week's downside wick.
Bitcoin made a comeback to reach $63,000 on May 10, with the surge in overhead liquidity beyond $100 million. Details from Cointelegraph Markets Pro and TradingView witnessed Bitcoin's local peak at $63,876 on Bitstamp before settling down. The price movement of Bitcoin gave a satisfactory outcome following the lows of below $61,000, a slump that remained regardless of striking unemployment data from the United States. Material Indicators, a trading resource, pointed out a considerable increase in ask liquidity just above the current rate. This surged beyond $100 million between $63,000 and $65,000 according to data from its proprietary trading tool, FireCharts.
It's a historical fact that the side with the highest amount of liquidity generally dominates these intra-trend disputes. In an extended analysis of possible support points if Bitcoin dropped again, Keith Alan, the co-founder of Material Indicators, identified the prior consolidation range of $58k - $60k as initial targets. He noted that FireCharts' order book data reveals a lack of bid liquidity at $60k, however there is more at $58k. If the price persists, this would develop a higher low which is the outcome Bitcoin investors desire to witness.
Alan emphasized the importance of the 21-week simple moving average (SMA), presently standing at $56,127, adding that should this level fail, $52,000 could come into play. Alan added that a decline to that point would symbolize a 30% reduction from the record high. A large amount of the bid liquidity supporting that range shifted up to $58k during the week, signifying a tilt in sentiment upwards. He said, sentiment sway is often linked with price movement, so if bears succeed in dropping the price below $58k the sentiment will likely either strengthen in the $50k - $52k range or relocate towards the mid $40s.
Popular analyst and trader, Rekt Capital meanwhile, noted that there wasn't much evidence of volatility. He commented that Bitcoin was simply sticking to the Range Low as support, a reaction to last week's downside wick. He indicated that this year's block subsidy halving wasn't fundamentally distinct from previous ones, in a chart providing perspective for Bitcoin's price changes. Please note, this article doesn't provide investment advice. Investments and trade moves come with risks. Hence, every reader should do their research before making a decision.
Published At
5/10/2024 4:25:00 PM
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