BTC price approaches $100M liquidity zone, but Bitcoin remains without $60K support

Bitcoin (BTC) surged back to $63,000 on May 10 as the amount of available liquidity exceeded $100 million. BTC/USD reached local highs of $63,876 on Bitstamp before stabilizing. Despite strong US unemployment figures, Bitcoin had previously experienced a dip below $61,000.
Material Indicators, a trading resource, identified a substantial increase in ask liquidity just above the spot price. Between $63,000 and $65,000, the liquidity amounted to over $100 million on that day, according to data from its proprietary trading tool, FireCharts. Material Indicators noted that historically, the side with the highest concentration of liquidity tends to prevail in these intra-trend battles.
The day before, Keith Alan, co-founder of Material Indicators, analyzed potential support levels if Bitcoin were to experience another downward slump. He highlighted the significance of the 21-week simple moving average (SMA), currently at $56,127, and suggested that if that level fails to hold, $52,000 could come into play. However, Alan also mentioned that a move to that level would represent a 30% correction from the all-time high and that bid liquidity had shifted upward to $58,000, indicating a shift in sentiment.
Rekt Capital, a popular trader and analyst, observed that Bitcoin was simply maintaining support at the range low following last week’s downside wick. He compared BTC price moves with the block subsidy halving that occurred in April and concluded that this year’s event was not fundamentally different from previous halvings.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.