Key Points
- Bitcoin (BTC) surged back above $64,000 on May 7, with the market taking liquidity from both sides of the order book.
- US spot Bitcoin exchange-traded funds (ETFs) witnessed a strong day of inflows on May 6, indicating robust demand.
On May 7, Bitcoin (BTC) made a comeback, crossing the $64,000 mark. The market was active on both sides of the order book, absorbing liquidity.
Bitcoin Price Movement
Data indicates that the BTC price trend was on an upward trajectory from the day’s low of $62,864. Although the BTC/USD pair remained within a trading range established since May 3, it offered little respite to speculators. Sharp fluctuations in either direction resulted in the liquidation of positions.
Following the daily close, bid liquidity was taken around $63,500. Bitcoin then reversed to target a larger pool of liquidity approximately $1,000 higher, as confirmed by monitoring resource CoinGlass.
Market Outlook
Market commentators have been keeping a close eye on recent price movements. One noted that the CME futures gap during the weekend had already been filled. Another highlighted several critical levels to monitor in the future, including the monthly open and $61K as market demand.
The recovery from near two-month lows around $58,000 indicates a different bull market from that of 2021 when Bitcoin first targeted that level. This is largely due to increased demand from spot buyers.
In terms of demand, the US spot Bitcoin exchange-traded funds (ETFs) recorded significant inflows on May 6. All ten spot ETFs, including the Grayscale Bitcoin Trust (GBTC), experienced either neutral or positive flows, amounting to $217 million. On May 3, GBTC witnessed its first day of inflows since its conversion to an ETF.
These inflows indicate that supply is being absorbed, which is generally a bullish sign. Furthermore, the newly-launched Hong Kong spot ETFs have seen “very stable volume-wise with consistent $8-9 million” inflows.
