The market has seen increased liquidity, with BTC/USD briefly surpassing $69,500 before encountering familiar resistance zones. Notable trader Daan Crypto Trades highlighted the significance of the $68,300 and $69,800 levels, indicating that these will be key levels to watch in the short term.
While the liquidity is concentrated in BTC/USDT perpetual swap pairs, the liquidity surrounding the spot price of Bitcoin is also increasing, potentially leading to reduced volatility but increasing the likelihood of a liquidity surge thereafter.
Keith Alan, co-founder of trading resource Material Indicators, emphasized the importance of the $69,000 support level, expressing the need for the weekly close price to be above this level to instill confidence in a steady rise to $73,000.
As the U.S. market will be closed on May 27th for Memorial Day, Alan acknowledged the potential for Bitcoin to consolidate for "several weeks" in light of this holiday.
Renowned trader and analyst Rekt Capital focused on the $71,000 level, indicating that despite Bitcoin's move past $71,500, this is still a resistance level that has not been breached, suggesting that consolidation between $60,000 and $70,000 may persist for several weeks.
Observations from CoinGlass data indicate that if this scenario unfolds, Bitcoin's monthly close for May may still end up in the red, consistent with trends from the past three years. This suggests that the cryptocurrency market may see a prolonged period of consolidation before any significant breakthrough in Bitcoin's price.
