Bitcoin (BTC) reached $63,000 on May 10 as the amount of available liquidity increased to over $100 million.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin liquidity battle intensifies
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD surged to local highs of $63,876 on Bitstamp before stabilizing.
Despite strong unemployment figures in the United States, BTC’s price had previously dropped below $61,000.
Analyzing the order books, trading resource Material Indicators identified a significant accumulation of sell orders just above the current price level.
Between $63,000 and $65,000, there was over $100 million worth of sell orders, as shown by data from its proprietary trading tool, FireCharts.
Material Indicators/X
The day before, Keith Alan, co-founder of Material Indicators, analyzed potential support levels in case Bitcoin experienced another downward trend.
“The obvious targets take us first to the historical consolidation range of $58k – $60k,” Alan said.
BTC/USD 1-week chart with 21SMA. Source: TradingView
Alan emphasized the importance of the 21-week simple moving average (SMA), which currently stands at $56,127. If this level fails to hold, the next support level would be around $52,000.
“A drop to that level would represent a 30% correction from the all-time high. A significant portion of the buy orders that were supporting the price in that range have moved up to $58k this week, indicating a shift in sentiment to the upside, at least for now,” Alan added.
BTC price continues to hold range low
Meanwhile, popular trader and analyst Rekt Capital noted that Bitcoin was still holding the range low as support, following last week’s downward wick.
Related: Ethereum ‘speculatory divergence’ sees ETH price cling to $3K support
Rekt Capital informed his followers that there were no significant signs of volatility in the current market.
An accompanying chart provided a comparison of BTC price movements after the block subsidy halving in April. Rekt Capital previously stated that this year’s event did not fundamentally differ from previous halvings.
BTC price comparison. Source: Rekt Capital/X
This article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.