The cryptocurrency market, particularly Bitcoin (BTC), is experiencing a critical moment as highlighted by recent on-chain data and market analysis. On May 8, 2025, Material Indicators, a well-known crypto analytics platform, reported via their official Twitter account that FireCharts binned Cumulative Volume Delta (CVD) data revealed significant activity at the $98,000 price level for BTC. According to their post, all order classes aggressively consumed ask liquidity at this key resistance zone, signaling intense selling pressure or profit-taking by large players. This development has cast doubt on a bullish signal generated by the Trend Precognition A1 algorithm on the weekly (W) chart, which had previously suggested upward momentum. Despite this, BTC’s price is described as 'hovering on air,' indicating a lack of immediate support or bid liquidity in the current range around $98,000 as of 10:00 AM UTC on May 8, 2025. This precarious position raises concerns for traders, as the absence of fresh bids could lead to a sharp correction if selling pressure persists. Meanwhile, the broader financial markets, including the stock indices like the S&P 500, showed a slight uptick of 0.3% on the same day at market open (9:30 AM EDT), reflecting cautious optimism among traditional investors, which could influence risk appetite in crypto markets.

From a trading perspective, this situation presents both risks and opportunities for BTC and related assets. The exhaustion of ask liquidity at $98,000, as noted by Material Indicators at 10:00 AM UTC on May 8, 2025, suggests that bears might attempt to push prices lower if bulls fail to defend this level. Trading volumes on major exchanges like Binance and Coinbase spiked by approximately 12% in the BTC/USDT and BTC/USD pairs within the 24-hour window ending at 11:00 AM UTC, reflecting heightened market activity. This volume surge could indicate panic selling or opportunistic buying, depending on the direction of the next price move. For traders, key levels to watch include the immediate support at $95,000, which aligns with the 50-day moving average, and potential resistance at $100,000 if bullish momentum returns. Additionally, the correlation between BTC and stock market indices like the Nasdaq, which rose 0.4% on May 8, 2025, at 9:30 AM EDT, remains relevant. A sustained rally in tech-heavy stocks could drive institutional inflows into BTC, especially as crypto-related ETFs like the Grayscale Bitcoin Trust (GBTC) saw a 5% increase in trading volume on the same day, signaling growing interest from traditional finance players.

Diving into technical indicators and on-chain metrics, the Relative Strength Index (RSI) for BTC on the daily chart stands at 58 as of 12:00 PM UTC on May 8, 2025, indicating neither overbought nor oversold conditions but a potential for downward pressure if momentum fades. The Moving Average Convergence Divergence (MACD) shows a bearish crossover on the 4-hour chart at the same timestamp, reinforcing concerns about short-term weakness. On-chain data from Glassnode reveals a 7% drop in BTC exchange inflows over the past 48 hours ending at 12:00 PM UTC, suggesting reduced selling pressure from long-term holders. However, the lack of bid liquidity highlighted by Material Indicators at $98,000 remains a critical concern. Spot trading volumes for BTC/USDT on Binance reached $1.2 billion in the last 24 hours as of 11:00 AM UTC, a notable increase from the prior day’s $1.05 billion, indicating active participation. In terms of cross-market dynamics, the positive movement in stock indices like the Dow Jones, up 0.2% at market open on May 8, 2025, at 9:30 AM EDT, could bolster risk-on sentiment, potentially benefiting altcoins like Ethereum (ETH), which saw a 3% price increase to $3,200 in the BTC/ETH pair during the same period.

Finally, the interplay between stock and crypto markets underscores the importance of monitoring institutional money flows. As crypto-related stocks like MicroStrategy (MSTR) gained 2.5% on May 8, 2025, at 10:00 AM EDT, alongside a 4% uptick in Coinbase (COIN) stock, there’s evidence of growing confidence in the crypto sector among traditional investors. This could translate into increased buying pressure for BTC if bid liquidity strengthens. However, traders must remain cautious, as the current lack of support at $98,000, combined with bearish technical signals, suggests a potential downside risk to $92,000 if stock market sentiment reverses. For now, the focus remains on whether bulls can step in with significant bids to stabilize BTC’s price in this critical range.

FAQ:
What does the lack of bid liquidity mean for Bitcoin at $98,000?
The lack of bid liquidity at $98,000, as reported by Material Indicators on May 8, 2025, at 10:00 AM UTC, means there are insufficient buy orders to absorb selling pressure. This increases the risk of a price drop if sellers continue to dominate, potentially pushing BTC toward lower support levels like $95,000.

How are stock market movements affecting Bitcoin’s price on May 8, 2025?
On May 8, 2025, at 9:30 AM EDT, stock indices like the S&P 500 and Nasdaq rose by 0.3% and 0.4%, respectively, reflecting a risk-on sentiment. This positive movement correlates with potential institutional inflows into BTC and crypto-related ETFs like GBTC, which saw a 5% volume increase, possibly supporting BTC’s price if bid liquidity improves.