Bitcoin returned to the $63,000 level on May 10 as overall liquidity exceeded $100 million. Data from TradingView showed that the BTC/USD pair rose to local highs of $63,876 at centralized exchanges before consolidating. Bitcoin’s price action recovered overnight after seeing lows below $61,000; this weakness persisted despite unemployment figures released in the U.S.
What’s Happening on the Bitcoin Front?
Trade source Material Indicators, analyzing the status quo in the futures market order books, indicated significant amounts of sell liquidity just above the spot price. According to data from FireCharts’ proprietary trading tool, this amount reached over $100 million daily between $63,000 and $65,000. The team shared the following statement:
“Historically, the side with the highest liquidity density wins these trend-internal battles.”
The previous day, Keith Alan, co-founder of Material Indicators, provided an extended analysis of potential support levels in case Bitcoin sees another decline, sharing the following:
“Open targets first take us to the historical consolidation range between $58,000 and $60,000. Order book data from FireCharts currently shows not much bid liquidity at the $60,000 level but more at $58,000. If the price stays there, a higher bottom level that bulls would like to see will form.”
Alan emphasized the importance of the 21-week simple moving average (SMA), currently at $56,127, and highlighted that if this level cannot hold, the $52,000 level could come into play:
“Such a low move represents a 30% correction from the all-time high. A significant portion of the bid liquidity forming support in this range has risen to $58,000 this week, giving a hint that sentiment is at least temporarily shifting upwards.”
“Of course, nothing changes sentiment as much as price movement, so if bears manage to pull the price below $58,000, we will either see sentiment strengthen in the $50,000 to $52,000 range or start shifting towards the mid $40,000s.”
Insights from a Prominent Analyst on Bitcoin
Meanwhile, summarizing the current situation, popular trader and analyst Rekt Capital saw few signs of confusion and commented on the social media platform X:
“Bitcoin is still holding the low range as support after last week’s downward wick.”
An accompanying graph provided context for Bitcoin price movements in light of the block subsidy halving in April; Rekt Capital had previously argued that this year’s event was not fundamentally different from previous halving events.
