Bitcoin (BTC) Liquidity Battle: Over $100 Million in Play as Price Hits $63,000
Bitcoin (BTC) made a strong comeback to $63,000 on May 10 as the battle for liquidity intensified, with over $100 million in overhead liquidity recorded. The cryptocurrency spiked to local highs of $63,876 on Bitstamp before consolidating, showing improved price action after dropping below $61,000.
Analyzing the order books, trading resource Material Indicators highlighted a significant build-up of ask liquidity between $63,000 and $65,000, totaling more than $100 million on the day. This liquidity battle is crucial as the side with the highest concentration of liquidity typically wins intra-trend battles.
Material Indicators co-founder, Keith Alan, offered extended analysis of potential support levels in case of another downward slump, pointing to the historical consolidation range of $58,000 – $60,000 as key levels to watch. He emphasized the importance of the 21-week simple moving average (SMA) at $56,127, with $52,000 as the next support level if the SMA fails to hold.
Popular trader and analyst Rekt Capital noted that Bitcoin is currently holding the Range Low as support, following a downside wick from last week. He provided a chart comparing BTC price moves in light of April’s block subsidy halving, suggesting that this year’s event did not fundamentally differ from previous halvings.
Overall, the BTC price is holding steady within a range, with key support and resistance levels to watch. The cryptocurrency market remains volatile, and investors should conduct their own research before making any investment decisions.
