As an experienced analyst, I’ve seen my fair share of market volatility in the cryptocurrency space, and the recent price action in Bitcoin (BTC) has been no exception. The $60,000 support level, a crucial psychological barrier for bulls, was tested into the May 10 daily close as fear crept back into the market following the classic post-halving “danger zone.”
As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin (BTC) approached a significant resistance level of $60,000 prior to the May 10 daily close. This area has been identified as a potential challenge due to the historical trend following the halving event, often referred to as the “danger zone” for bulls.
BTC price gives up gains above $60,000
According to the data from CryptoMoon Markets Pro and TradingView, the lowest intraday Bitcoin price on Bitstamp reached $60,190 during the current trading session.
As an analyst, I’d rephrase that sentence as follows: I was expecting the price to maintain its position around $63,000, but suddenly, it plummeted. The reasons for this unexpected decline remain unclear.
As an analyst, I would paraphrase “Monthly open has been swept away once again, and monthly buyers have been taken out.” To read as, “The monthly open, a key level of resistance in the market, has been broken through, and significant buying activity at the monthly timeframe has been eliminated. If bulls aim for higher prices and intend to reverse the current downtrend, this could be an opportune moment in my opinion.”
“Specifically key area for bulls to do something is $60.8K – $61K (also happens to be range low).”
Based on the analysis of Material Indicators, it appears that significant institutional investors could be making substantial trades in the market.
It’s possible that an institutional entity might be hoping for Bitcoin to not surge past a certain point during the weekend, as the Bitcoin Exchange-Traded Fund (ETF) market will be unavailable then.
A chart that went hand in hand with the text displayed the liquidity levels on Binance, the world’s biggest cryptocurrency exchange, featuring a fresh block near the price point of $62,500. According to Material Indicators, this level could potentially be triggered following the weekly market settlement.
“I wouldn’t be shocked if the sell wall causing the price to drop goes even lower. Likewise, I wouldn’t be taken aback if we witness a reversal (roof pull) following the ‘W’ candle’s closure on Sunday.”
“Danger zone” ends with Bitcoin weekly close
Revising his view on Bitcoin’s price trends considering the recent block reward reduction, well-known trader and analyst Rekt Capital signaled an end to the current downturn.
The downward trend for BTC/USD in the weeks following a Bitcoin halving event may soon be over, as this historically challenging period approaches its end.
In late April, Rekt Capital foresaw a significant drop in Bitcoin’s value within a fortnight – an eventuality that materialized as prices plummeted to their lowest point in over two months at around $56,500.
As an analyst, I observed that Bitcoin dipped significantly below the Re-Accumulation Range Low, similar to what occurred in 2016. Consequently, the ominously titled “Post-Halving Danger Zone” threshold has been met in terms of price.
“Time-wise however, the ‘Danger Zone’ officially ends in 2 days.”
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2024-05-11 15:37