Bitcoin (BTC) challenged the $60,000 support by the daily close on May 10 as a classic post-halving “danger zone” scared bulls.
BTC price gives up gains above $60,000.
The intraday low for BTC price on Bitstamp is $60,190, according to data from Cointelegraph Markets Pro and TradingView.
The sudden decline thwarted attempts to hold on to levels around $63,000, and there are conflicting explanations as to why.
“We swept up not only the monthly openings but also the monthly buyers. If the bulls want higher prices and want to break this downtrend, it’s here and now.” Popular trader Skew wrote in some of his own writings: Latest market coverage On X (formerly Twitter) after most of the drop.
“A particularly key area where the bulls could do something is $60.8K – $61K (although there are lower ranges as well).”
Commenting on the event, trading resource Material Indicators suggested that large institutional players may be in the works.
“We speculate that some institutional groups may not want to see Bitcoin breakout over the weekend while the BTC ETF market is closed,” part of the X post said.
The attached chart shows order book liquidity on Binance, the largest global exchange, including a new block worth about $62,500, which Material Indicators predict could be released after the weekly close.
“I wouldn’t be the least bit surprised if prices fall as this sales wall gets lowered. “I wouldn’t be surprised if we see a loop full after the W candle closes on Sunday,” the post continued.
“Danger Zone” Ends as Bitcoin Weekly Closes
Updating His views on BTC price action after the block subsidy halving last month came at a time when popular trader and analyst Rekt Capital commented on the current weakness.
Related: ETH price appears to be stuck near $3,000 support due to Ethereum ‘speculative divergence’.
BTC/USD has tended to fall in the weeks following the halving event, and this “danger zone” is now coming to an end.
In late April, Rekt Capital predicted a massive decline in Bitcoin within two weeks, which ultimately materialized in the form of a trip to a two-month low of $56,500.
He said on this day, “Bitcoin is actually showing a downward trend below the lower limit of the redeposit range as in 2016. Therefore, in terms of price, the purple ‘risk zone’ after the halving has been satisfied.”
“But in terms of time, the ‘danger zone’ officially ends in two days.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.