As BTC price approaches the $100M liquidation zone, Bitcoin is still missing the $60K support.
Bitcoin (BTC) rebounded to $63,000 on May 10.
Bitcoin exchange heats up
Data from Cointelegraph Markets Pro and TradingView showed a domestic high on Bitstamp to $63,876 before the BTC/USD consolidation.
BTC's price action improved overnight after seeing a low below $61,000 – which persisted despite a weak US unemployment figure.
Analyzing the situation on the order books, the material indicators of trading inputs indicated a high level of demand liquidity above the spot price.
Between $63,000 and $65,000, that was more than $100 million on the day, according to data from FireCharts' proprietary trading tool.
“Historically, the side with the highest liquidity will win these internal trend wars,” added X (formerly Twitter).
A day ago, Keith Allan, founder of Material Indicators, provided a lengthy analysis of support levels in case Bitcoin sees another bearish decline.
“Clear targets first took us to the historical consolidation range of $58k – $60k,” he wrote.
“Order book data in FireCharts shows that there is currently not much bidding liquid at $60k, but there is more at $58k. If the price stays there, it will create the high low that the bulls want to see.
Alan emphasized the importance of the 21-week simple moving average (SMA), currently at $56,127, and the $52,000 level that would come into play if this level fails.
“The lowest action represents a 30% correction. A good amount of bid liquidity, which has been providing support in that range, moved to $58k this week and suggests that sentiment is turning to the upside, at least for now,” he continued.
“Obviously, nothing changes as far as price action, so if the bears can push prices below $58k, we'll either see sentiment strengthen around $50k-52k, or start to shift into the mid-$40s.”
BTC Price “Simply Undersized”
Summarizing the current landscape, noted trader and analyst Rect Capital sees little sign of turbulence.
Related: Ethereum ‘speculative divergence' sees ETH price clinging to $3K support
“Bitcoin is still easily holding the Range Low as support, following the wick down from last week,” he told X Followers.
The accompanying chart provides context for BTC's price action halving from April's rally, with Rect Capital previously suggesting that this year's event is no different from previous halvings.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
