Bitcoin Rebounds to $63,000 Amidst Surging Liquidity Over $100 Million

Bitcoin experienced a rebound to $63,000 on May 10, accompanied by a surge in overhead liquidity exceeding $100 million. This improvement came after a period of decline, despite positive unemployment data from the United States indicating economic resilience. The spike in BTC/USD to local highs of $63,876 on Bitstamp was followed by a consolidation phase.

Material Indicators reported a substantial increase in ask liquidity above the spot price, with liquidity exceeding $100 million between the $63,000 and $65,000 range on the same day. This observation suggests potential upward momentum if these liquidity levels are maintained. However, co-founder Keith Alan highlighted potential support levels in case of a decline, pointing to the historical consolidation range of $58,000 to $60,000 as initial targets.

Alan also emphasized the significance of the 21-week simple moving average (SMA), currently at $56,127, and identified the $52,000 level as a critical point in case the SMA support failed, potentially indicating a 30% correction from the all-time high.

Observations indicated a shift in market sentiment, with much of the bid liquidity that had been forming support moving up to $58,000. However, Alan noted that a push below $58,000 could either strengthen sentiment in the $50,000 to $52,000 range or shift it towards the mid $40,000s.

Meanwhile, Rekt Capital commented on the lack of major upheaval in the market despite previous downside wicks, suggesting that Bitcoin is still holding the Range Low as support. This stability follows the block subsidy halving in April, which hasn't fundamentally altered market behavior according to the analyst.

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