As a researcher with a background in finance and experience in following the cryptocurrency market, I find the recent Bitcoin (BTC) price surge to $64,500 on May 4 intriguing. The out-of-hours trading gains and new local highs are noteworthy, as they represent a significant recovery from April’s 15% losses.
Bitcoin (BTC) pushed to $64,500 on May 4 as out-of-hours trading produced fresh BTC price gains.
Bitcoin ups volatility as weekend begins
The prices of bitcoin reached new heightens in May, with data from CryptoMoon Markets Pro and TradingView verifying a new record high of $64,522 on Bitstamp.
The US employment data showed a surge in strength towards the end of the day, boosted by positive indicators from the cryptocurrency market. Notably, the Grayscale Bitcoin Trust (GBTC) saw its first significant inflows in almost three months.
As a crypto investor, I’ve noticed that the value of Bitcoin against the US Dollar (BTC/USD) had increased by 5% during the current month, based on information from the monitoring resource CoinGlass. This is in stark contrast to the 15% decrease we experienced back in April.
In his recent analysis on X, which was formerly known as Twitter, Daan Crypto Trades expressed excitement about the strong market entry for the asset towards the end of the previous trading day.
“While I am liking how the charts are shaping up on the higher timeframes, I’ll be patient and not start adding on green candles during the weekend. Will see how this plays out.”
A chart that went hand in hand with the data displayed a notable discrepancy from the most recent closing price of Bitcoin futures on CME Group. This disparity formed a “gap,” a phenomenon often filled by the BTC/USD market in due course.
As a researcher examining the financial markets, I’ve noticed an intriguing development: over the past weekend, there were notable gains. However, these positive movements have sparked concerns among some observers due to the perceived lack of involvement from Traditional Finance (TradFi) institutions.
Keith Alan, the co-founder of Material Indicators, issued a cautionary note. He believed that a correction was a real possibility given the fragile market liquidity.
He expressed a need for more bids in the market to maintain the ongoing price rise, addressing his X number of followers after sharing an order book chart from Material Indicators.
“Otherwise, it isn’t going to take much to dump through thin liquidity.”
Analysis: BTC price still below “main resistance”
According to renowned trader and commentator Credible Crypto, the market situation could make it worthwhile to sell Bitcoin short once it falls beneath the “major resistance” level of approximately $69,000.
In simple terms, he predicted two potential results for the Bitcoin price trend based on the chart he added to X, noting that the current region exhibits less trading activity.
As an analyst, I would rephrase it as follows: “The green path is the preferred scenario for me. By holding onto the local highs we surpassed, we can continue our upward trend towards major resistance. This situation enables me to execute shorts on various altcoins. However, the red path isn’t favorable. If we fail to hold this reclaim, an early breakdown will occur, and the ideal short zones for most of my targeted altcoins won’t materialize.”
If the price of Bitcoin (BTC) falls below $56,000 against the US Dollar (USD), holding long positions on Bitcoin could be a profitable move according to Credible Crypto’s assessment.
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2024-05-04 17:17