Bitcoin (BTC) surpassed $64,000 on May 7 as the market experienced high liquidity on both sides of the order book. The BTC/USD 1-hour chart showed an upward trend from the day’s lows of $62,864 on Bitstamp. Although BTC/USD has been trading within a range since May 3, there have been sharp movements in both directions, resulting in the liquidation of positions. After the daily close, bid liquidity was taken around $63,500, and Bitcoin then reversed to target a larger cloud of liquidity around $1,000 higher, according to data from monitoring resource CoinGlass.
Popular trader Daan Crypto Trades commented on the recent price action, noting that the weekend’s CME futures gap had already closed. Fellow trader Skew highlighted several key levels to watch out for, stating that the price is currently fluctuating around $64,000. Skew also mentioned that the recovery from two-month lows near $58,000 sets this bull market apart from the one in 2021 when Bitcoin first reached that level, thanks to spot buyer demand.
In terms of demand, spot Bitcoin exchange-traded funds (ETFs) in the United States experienced a strong day of inflows on May 6. Data from various sources, including Farside, confirmed that all ten spot ETFs, including the Grayscale Bitcoin Trust (GBTC), saw either neutral or positive flows, totaling $217 million. GBTC saw its first day of inflows since its conversion to an ETF on May 3.
Popular commentator WhalePanda described the positive inflows as a bullish sign, stating that as long as the inflows remain positive, the supply of Bitcoin is being absorbed. WhalePanda also mentioned that the newly-launched Hong Kong spot ETFs have shown stable volume-wise inflows of around $8-9 million.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.