Bitcoin Challenges $60,000 Support, Giving Up Gains
Bitcoin faced a significant challenge as it tested the $60,000 support level during the May 10 daily close, triggering concerns among bullish investors. Data from Cointelegraph Markets Pro and TradingView revealed intraday lows of $60,190 on Bitstamp, marking a sudden drop from attempts to maintain levels around $63,000.
The price decline prompted speculation about potential factors behind the move, with some attributing it to institutional activity. Popular trader Skew highlighted the significance of the monthly open being swept and suggested that the recent downtrend could be an opportunity for bulls to push for higher prices.
Meanwhile, trading resource Material Indicators speculated that large-volume institutional players may have influenced market dynamics. They suggested that some entities may not want to see Bitcoin break out over the weekend, particularly with the BTC ETF market closed.
Institutional influence was further suggested by an analysis of order book liquidity on Binance, which indicated a significant sell wall around $62,500. Material indicators predicted the possibility of this sell wall being adjusted after the weekly close, potentially leading to further downward pressure on the price.
Popular trader and analyst Rekt Capital provided additional perspective on Bitcoin's price behavior following last month's halving event. Rekt Capital noted that Bitcoin typically experiences downside in the weeks following a halving, and the current "danger zone" phase appears to be coming to an end.
Rekt Capital's prediction of a major downside move within a two-week period was realized, with Bitcoin reaching lows of $56,500. However, Rekt Capital suggested that this downside move may signal the conclusion of the post-halving danger zone, indicating a potential shift in market dynamics.
Overall, Bitcoin's recent price movements reflect a period of volatility and uncertainty as investors navigate the post-halving landscape.
