Cryptocurrencies

Bitcoin opens $63K futures gap as weak liquidity threatens BTC price

Bitcoin opens $63K futures gap as weak liquidity threatens BTC price (BTC) rose to $64,500 on May 4, as out-of-hours trading led to fresh gains in Bitcoin prices.

Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price
Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price

Bitcoin increases volatility as the weekend begins

Data from Cointelegraph Markets Pro and TradingView confirmed new local highs of $64,522 on Bitstamp – a new peak for May.

The strength seen in US employment data gathered speed into the daily close, supported by encouraging signs of a recovery in the cryptocurrency market including the first inflows into the Grayscale Bitcoin Trust (GBTC) in nearly three months.

BTC/USD is up 5% since the beginning of the month as of writing, according to data from monitoring resource CoinGlass, which actually contradicts April’s 15% loss.

Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price

“We saw a big boost at the market close yesterday,” popular trader Daan Crypto Trades  reacted  in part of his recent coverage on X (formerly Twitter).

“Although I like the way the charts are shaping up on the higher time frames, I will be patient and not start adding green candles over the weekend. We will see how this happens.”

Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price

The accompanying chart showed a clear deviation from the latest closing price of CME Group Bitcoin futures, creating a “gap” that BTC/USD would tend to fill later.

Despite the impressive performance over the weekend, some were concerned about the overall strength of the market in the absence of TradFi participation.

Keith Allan, co-founder of Trading Resources Indicators,  warned  that a correction could easily come thanks to weak order book liquidity.

“I’m looking for bidding liquidity to replenish to continue this rally,” he told X followers who retweeted an order book chart from Material Indicators.

“Otherwise it wouldn’t take much to get rid of weak liquidity.”

Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price

Analysis: BTC price still below “key resistance”

Summing up  Meanwhile, popular trader and commentator Credible Crypto said, from his market perspective, conditions may favor selling Bitcoin below “key resistance” around $69,000.

Related: Price Analysis 5/3: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

By uploading a chart to

“The green path is perfect. We hold the local highs we broke above and continue to climb to the key resistance level. This will allow me to fill the shorts on a number of alternatives across the board. The red path is not perfect. “We have failed to sustain this recovery, are seeing an ‘early’ breakout, and the ideal short areas for most altcoins I am looking at are not being met,” he wrote.

Bitcoin Opens $63K Futures Gap As Weak Liquidity Threatens Btc Price

Credible Crypto added that long BTC positions would be significant if the BTC/USD price drops below $56,000.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

 

 

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