May 22, 2024
Bitcoin Price Today is $60,812, Nears $100M Liquidity Zone
Bitcoin price today

Bitcoin Price Today is $60,812, Nears $100M Liquidity Zone

Friday, May 10, 2024: Bitcoin Price Today is $60,812, experienced a dip, with its ticker dropping to $60,779 before rebounding to $63,000 today. This resurgence occurred amidst an increase in overhead liquidity, surpassing $100 million. Data from TradingView illustrated BTC/USD reaching local highs of $63,876 on Bitstamp before stabilizing.

Liquidity Dynamics

Material Indicators, a trading resource, highlighted a substantial accumulation of ask liquidity just above the current spot price. The data from its FireCharts tool revealed an amassed liquidity of over $100 million between the $63,000 and $65,000 range for the day. Commentary from X, formerly known as Twitter, suggested that historically, the side with the highest liquidity concentration tends to dominate intra-trend battles.

BTC/USDT liquidity heatmap. Source: Material Indicators/X

“In the past, prevailing trends have shown that the side boasting the highest liquidity concentration tends to prevail in intra-trend battles,” remarked X (formerly Twitter). The day before, Keith Alan, co-founder of Material Indicators, conducted a detailed analysis of potential support levels if Bitcoin were to face another downward slump. “Initial targets point us towards the historical consolidation range of $58k – $60k,” he stated.

“Order book data in FireCharts shows that there isn’t currently a lot of bid liquidity at $60k, but there is a more at $58k. If price holds there, it would create a higher low which is what bulls want to see.”

Support Levels and Analysis

Keith Alan, co-founder of Material Indicators, provided insights into potential support levels in case of another downward movement in Bitcoin’s price. He emphasized the significance of the 21-week simple moving average (SMA), which currently stands at $56,127, with $52,000 emerging as a possible support level if the SMA fails to hold. Alan also noted a shift in sentiment upwards, indicated by bid liquidity moving up to $58,000. he continued.

“Of course, nothing changes sentiment like price movement so, if bears manage to push price below $58k we will either see sentiment strengthen in the $50k – $52k range or start shifting towards the mid $40s.”

Market Sentiment and Analysis

Popular trader and analyst Rekt Capital observed minimal signs of disruption in the market. According to him, Bitcoin maintained support at the Range Low following the downside wick from the previous week. He provided a chart contextualizing BTC price movements in light of April’s block subsidy halving, suggesting that this year’s event did not fundamentally differ from previous halvings.

BTC price comparison. Source: Rekt Capital/X

In summary, Bitcoin’s price fluctuated within a defined range, experiencing both dips and rebounds. The analysis by Material Indicators highlighted the significance of liquidity dynamics, while Keith Alan emphasized potential support levels. Despite fluctuations, Rekt Capital remained optimistic about Bitcoin’s resilience in the market, suggesting that it continues to hold support levels.

Photo by Karolina Grabowska

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