Before the daily close on May 10, Bitcoin was testing $60,000 support as bulls were alarmed by the traditional post-halving “danger zone.”
There were intraday BTC price lows of $60,190 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView. Attempts to maintain levels around $63,000 were thwarted by an abrupt decline, the cause of which has been loosely explained. Both the monthly buyers and the monthly open have been swept out once more. The majority of the decline was followed by popular trader Skew writing, “If bulls want higher & want to break this downtrend, its here imo,” in part of his most recent market commentary on X (previously Twitter).
“Specifically key area for bulls to do something is $60.8K – $61K (also happens to be range low).”
Commenting on the events, trading resource Material Indicators suggested that large-volume institutional players may be at work.
“Speculating that some institutional entity may not want to see Bitcoin breakout over the weekend while the BTC ETF market is closed,” part of an X post read.
On Binance, the biggest exchange in the world, an accompanying chart displayed order book liquidity. It included a fresh block at roughly $62,500, which Material Indicators suggested would be lifted following the weekly close.
“I won’t be the least bit surprised if this sell wall moves lower to push price down. I also won’t be surprised if we see a roof pull after the W candle closes on Sunday,” the post continued.
Renowned trader and analyst Rekt Capital updated his assessment of the behavior of Bitcoin prices after the halving of block subsidies last month, although he also signaled the end of the current downturn.The weeks that follow a halving event have historically seen a decline in BTC/USD, and this “danger zone” is about to expire. Rekt Capital forecast a significant downturn in Bitcoin prices within two weeks at the end of April. This prediction was eventually fulfilled, with the price of Bitcoin plunging to two-month lows of $56,500. Like in 2016, Bitcoin is in fact declining brutally below the Re-Accumulation Range Low. Price-wise, then, the “Danger Zone” magenta once the post-halving has been satisfied,” he said that day.
“Time-wise however, the ‘Danger Zone’ officially ends in 2 days.”