Key Points
- Bitcoin (BTC) price returned to $63,000 on May 10 with overhead liquidity surpassing $100 million.
- Despite fluctuations, the cryptocurrency continues to hold strong, according to trading resource Material Indicators.
Bitcoin’s value surged back to $63,000 on May 10, as overhead liquidity went beyond $100 million.
Bitcoin’s Liquidity Battle
The BTC/USD value spiked to local highs of $63,876 on Bitstamp before consolidating. The price had improved after hitting lows below $61,000, a weakness that persisted despite strong U.S. unemployment figures.
Material Indicators, a trading resource, highlighted a significant increase of ask liquidity just above the spot price. This liquidity ranged between $63,000 and $65,000, totaling over $100 million on the day.
Bitcoin’s Potential Support Levels
Keith Alan, co-founder of Material Indicators, provided an extended analysis of potential support levels if Bitcoin experiences another downward slump. He suggested that the historical consolidation range of $58k – $60k would be the first obvious targets.
Alan stressed the importance of the 21-week simple moving average (SMA), currently at $56,127, with $52,000 coming into play if that level fails to hold. He added that if the price drops below $58k, sentiment might strengthen in the $50k – $52k range or start shifting towards the mid $40s.
Rekt Capital, a popular trader and analyst, saw little signs of upheaval, stating that “Bitcoin is still simply holding the Range Low as support, following the downside wick from last week.” He also suggested that this year’s block subsidy halving did not fundamentally differ from previous halvings.
