Bitcoin (BTC) returned to $63,000 on May 10 as indirect liquidity thickened past $100 million.
Bitcoin liquidity war is heating up
BTC/USD soared to a local high of $63,876 on Bitstamp before consolidation, according to data from Cointelegraph Markets Pro and TradingView.
BTC price action improved overnight after hitting lows below $61,000. This is a weakness that persists despite the country’s high unemployment rate.
After analyzing the current state of the order book, trading resource key indicators indicated a significant accumulation of liquidity just above the spot price.
Between $63,000 and $65,000 per data from FireCharts proprietary trading tool, the total for the day was over $100 million.
“Historically, the side with the highest concentration of liquidity wins the battle within these trends.” part of commentary Added At X (formerly Twitter).
The previous day, Material Indicators co-founder Keith Alan suggested: Extended Analysis Potential support levels if Bitcoin experiences another downward plunge.
“The clear target first takes us to the historical consolidation range of $58,000 to $60,000,” he wrote.
“Order book data from FireCharts shows that there is currently not much liquidity to bid at $60,000, but there is more liquidity at $58,000. “If the price stays the same, it will create a higher low that the bulls want to see.”
Alan emphasized the importance of the 21-week simple moving average (SMA), which is currently at $56,127, with $52,000 coming into play if this level is not maintained.
“A move that low would imply a 30% correction from all-time highs. “A lot of the bid liquidity that was forming support in that range has moved up to $58,000 this week, which gives us a clue that sentiment is on the rise, at least for now,” he continued.
“Of course, nothing changes sentiment like a price move, so if bears break below $58,000, sentiment will likely strengthen in the $50,000-52,000 range or start to move into the mid-$40s.”
BTC price “simply remains in a low range”
To summarize the current situation, popular trader and analyst Rekt Capital sees few signs of upheaval.
Related: ETH price appears to be stuck near $3,000 support due to Ethereum ‘speculative divergence’.
“Bitcoin still holds Range Low as support following last week’s decline,” he said. said X number of followers.
The attached chart provided context for BTC price movements taking into account the block subsidy halving in April, with Rekt Capital previously suggesting that this year’s event is not fundamentally different from previous halvings.
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