Bitcoin (BTC) surged to $64,500 on May 4 as trading outside of regular hours led to fresh gains in its price.
The BTC/USD 1-hour chart from TradingView showed that Bitcoin reached new local highs of $64,522 on Bitstamp, setting a new peak for May. This increase in strength was fueled by positive signals of a crypto market recovery, including the first inflows for the Grayscale Bitcoin Trust (GBTC) in nearly three months.
At the time of writing, BTC/USD was up 5% for the month, according to data from CoinGlass. This was a significant contrast to the 15% losses experienced in April.
Popular trader Daan Crypto Trades noted the strong push in the market close on May 4, as shown in a chart that displayed a divergence from the latest CME Group Bitcoin futures closing price. This created a “gap” that BTC/USD tends to fill later on.
However, despite the impressive performance over the weekend, some expressed concerns about the overall strength of the market in the absence of traditional financial (TradFi) participation. Keith Alan, co-founder of trading resource Material Indicators, cautioned that a correction could easily occur due to thin order book liquidity.
In terms of analysis, popular trader and commentator Credible Crypto stated that conditions might favor going short on BTC below the “main resistance” level around $69,000. He presented two possible outcomes for BTC’s price action, with the current area having comparatively low liquidity. He emphasized that long BTC positions would be of interest if BTC/USD dipped below $56,000.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.