Bitcoin regained momentum, hitting a notable $63,000 level on May 10, with liquidity surpassing $100 million. This rebound in Bitcoin’s price occurred despite persistent lows the previous night, even as U.S. unemployment figures were released. The cryptocurrency managed to achieve a high of $63,876 at centralized exchanges before stabilizing.
Market Reactions and Futures Analysis
Analysis from Material Indicators revealed that futures market order books are showing significant sell liquidity just above the spot price, mainly in the range between $63,000 to $65,000. Material Indicators suggest that the outcome typically favors the side with denser liquidity in these trend-internal skirmishes.
Insights on Potential Support Levels
Keith Alan from Material Indicators extended his analysis to potential fallbacks if Bitcoin’s price were to dip further. He highlighted that while the $60,000 mark shows scant bid liquidity, the $58,000 level might offer a sturdy base, potentially signaling a bullish sentiment temporarily.
Concrete User Inferences
- Significant sell liquidity indicates potential resistance above the $63,000 level.
- Observations at $58,000 and $60,000 levels are crucial for predicting short-term price stabilization.
- The 21-week SMA at $56,127 plays a critical role in maintaining current price levels.
Alan further stressed the importance of the 21-week simple moving average (SMA), which sits at $56,127, positing that a dip below this could see prices drop to around $52,000. He also noted the responsiveness of market sentiment to price movements, suggesting a possible sentiment shift if the price falls below $58,000.
In summary, popular analyst Rekt Capital noted that despite recent price volatility, Bitcoin is maintaining its lower range as support. Accompanying data suggests that this year’s block subsidy halving event has mirrored patterns observed in previous cycles, without introducing fundamental shifts.
