Bitcoin (
BTC
) surged above $64,000 on May 7 as market participants took advantage of liquidity on both sides of the order book.
The BTC/USD 1-hour chart showed that BTC price rebounded from its lows of $62,864 on Bitstamp. Although it remained within a trading range since May 3, BTC/USD experienced sharp movements in both directions, resulting in the liquidation of positions.
After the daily close, bid liquidity was taken around $63,500, and Bitcoin then reversed to attack a larger cloud of liquidity approximately $1,000 higher, according to data from monitoring resource CoinGlass.
Popular trader Daan Crypto Trades commented on the recent price action, noting that the weekend’s CME futures gap had already closed. He acknowledged that it took a few hours after the futures reopened, but it happened on Monday, which is a common occurrence.
Fellow trader Skew highlighted several key levels to watch in the future. He mentioned that the price is currently hovering around $64,000 and emphasized that the recovery from two-month lows near $58,000 distinguishes this bull market from that of 2021 due to spot buyer demand.
In terms of demand, United States spot Bitcoin exchange-traded funds (ETFs) experienced significant inflows on May 6. Data from sources such as Farside confirmed that all ten spot ETFs, including the Grayscale Bitcoin Trust (GBTC), saw positive flows, totaling $217 million. GBTC, in particular, recorded its first day of inflows since its conversion to an ETF on May 3.
WhalePanda, a popular commentator, noted that as long as inflows remain positive, it indicates that the supply is being absorbed, which is overall bullish. Additionally, WhalePanda described the inflows to the newly-launched Hong Kong spot ETFs as having stable volume, consistently around $8-9 million.
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.