On May 4, Bitcoin surged to $64,500 as further price increases were generated by trading after hours.
Bitstamp records new local highs of $64,522, a new milestone for May, according to data from Cointelegraph Markets Pro and TradingView.Invigorated by positive indications of a recovering cryptocurrency market, such as the first inflows for the Grayscale Bitcoin Trust (GBTC) in almost three months, the strength that surfaced in US employment data continued to gather momentum until the daily close.Compared to April’s 15% losses, BTC/USD was up 5% so far this month as of this writing, according to data from the monitoring resource CoinGlass.
“Had a great push into the market close yesterday,” popular trader Daan Crypto Trades reacted in part of his latest coverage on X (formerly Twitter).
“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 clear divergence from the most recent CME Group Bitcoin futures closing price was displayed in the accompanying chart, which left a “gap” that BTC/USD usually fills in later.Some were worried about the market’s general strength in the absence of TradFi involvement, despite the market’s outstanding performance over the weekend. Co-founder of the trading resource Material Indicators Keith Alan cautioned that limited order book liquidity may quickly lead to a correction.
“Looking for bid liquidity to replenish to keep this rally going,” he told X followers retweeting an order book chart from Material Indicators.
“Otherwise, it isn’t going to take much to dump through thin liquidity.”
In a summary of his opinions on the market, well-known trader and analyst Credible Crypto stated that circumstances might be favorable for shorting Bitcoin below the “main resistance” level of $69,000.
He projected two probable outcomes for the current BTC price action by uploading a chart to X, with the present region being rather liquid.
“Green path is ideal. We hold the local highs we broke above and continue up to the major resistance. This will allow me to fill shorts on a number of alts across the board. Red path is not ideal. We fail to hold this reclaim, see an ‘early’ breakdown, and ideal short zones for most alts I’m eyeing up are not met,” he wrote.
Credible Crypto added that long BTC positions would be of interest should BTC/USD dip below $56,000.