Bitcoin opens $63k futures gap as thin liquidity scares BTC price.
Bitcoin (BTC) pushed to $64,500 on May 4 as after-hours trading saw fresh BTC price gains.
As the weekend begins, Bitcoin volatility increases
Data from Cointelegraph Markets Pro and TradingView confirmed local highs of $64,522 on Bitstamp – a new high for May.
Strength in US employment data gathered pace to a daily close, encouraging signs of recovery in the crypto market, including the first surge in three months for Grayscale Bitcoin Trust (GBTC).
BTC/USD is up 5% on a monthly basis at the time of writing, according to data tracked by CoinGlass, which already contrasts with April's 15% loss.
“There was a big push in the market yesterday,” reacts prominent trader Diane CryptoTrades in his latest coverage on X (formerly Twitter).
“While I'm loving how the charts are shaping up on the higher timeframes, I'm going to be patient and not start piling on the green candles at the end of the week. Will see how this goes.
The accompanying chart showed a clear divergence from the recent CME Group Bitcoin futures closing price, creating a “gap” that BTC/USD tended to fill later.
While the weekend's performance was impressive, some were concerned about the overall strength of the market due to TradFi's lack of participation.
Keith Allan, founder of trading resource Material Indicators, warned that a correction could easily follow due to liquidation of the thin order book.
“Looking to fill the bid liquid to keep this rally going,” he told his followers, retweeting a chart of the material indicators' order book.
“Otherwise, it doesn't take much to throw away thin liquid.”
Analysis: BTC price is still below “major resistance”.
Summarizing his market views, prominent trader and analyst Credible Crypto said conditions favor going short BTC below “major resistance” around $69,000.
Related: Price Analysis 5/3: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Uploading a chart to X, he predicts two possible outcomes for the current BTC price action, with the current environment relatively short on liquidity.
“A green path is ideal. We hold local highs that we broke above and continue to major resistance. This helps me fill shorts on several alts on the board. A red path is not ideal. We failed to hold this back, we saw an ‘early' breakdown, and for what I'm seeing “Most alts' short circuits are incomplete,” he wrote.
Credible Crypto added that if BTC/USD falls below $56,000, there will be interest in long BTC positions.
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.
