Bitcoin has almost completed its major price decline phase following April’s halving, new analysis confirms.
The 60,000 support level was challenged on the close of May 10, with the classic post-halving “danger zone” scaring the bulls.
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BTC/USD 1-hour chart
BTC price gives back gains above $60,000.
Data from Cointelegraph Markets Pro and TradingView show that BTC prices fell as low as $60,190 on Bitstamp during the session.
The sudden drop frustrated attempts to sustain levels around $63,000, with different explanations on the impetus behind it.
“Monthly open volume is getting swept up again and monthly buyers are getting wiped out. In my opinion, if bulls want to go higher and want to break this downtrend, this is where they are going,” prominent trader Skew wrote in his latest market report on X after most of the decline.
“The specific key area for bulls to make a move is $60,800-$61,000 (which also happens to be the range low).”
BTC/USDT liquidity chart
Commenting on these events, trading resource Material Indicators suggests that a large number of institutional players may be at play.
“Speculating that some institutional entities may not want to see Bitcoin breakout on the weekend when the BTC ETF market is closed,” read part of X’s post.
An accompanying chart showing order book liquidity on Binance, the world’s largest exchange, includes new blocks around $62,500, which Material Indicators predicts could rise after the weekly close.
"I wouldn't be surprised if selling moves lower thereby pushing prices lower. I also wouldn't be surprised if we see a roof off the line after the W candle closes on Sunday," the post continued.
‘Danger Zone’ Ends as Bitcoin Weekly Closes
Meanwhile, popular trader and analyst Rekt Capital updated his view on BTC price action following last month’s block subsidy halving, calling for an end to the current weakness.
BTC tends to fall in the weeks following a halving event, and this “danger zone” is now coming to an end.
At the end of April, Rekt Capital predicted that Bitcoin would see a sharp drop within two weeks, which eventually came true, with Bitcoin falling to a two-month low of $56,500.
“BTC did fall sharply below the re-accumulation range lows as in 2016. Therefore, from a price perspective, the post-halving ‘danger zone’ purple has been satisfied,” he said that day.
"But in terms of time, the 'Danger Zone' will officially end in two days."
