As an analyst with a background in macroeconomics and experience in following the cryptocurrency market, I find the recent price action of Bitcoin (BTC) intriguing. The latest U.S. economic data releases have provided a significant boost to the bullish sentiment in the crypto market.
As a bitcoin analyst, I’ve observed that following the May 16 Wall Street opening, Bitcoin dipped in value from around $66,000. However, this downturn was overshadowed by new US macroeconomic data that provided a boost to bullish sentiments.
U.S. jobless claims further bullish crypto
As a data analyst, I’ve examined the price trends of Bitcoin using data from CryptoMoon Markets Pro and TradingView. Yesterday, we observed a significant surge in Bitcoin’s value, resulting in a 7.5% increase. However, the market volatility associated with these gains seems to have subsided, making the price action more stable for now.
The CPI and PPI reports for April, which came out next, surpassed anticipations, leading to a significant surge in risk assets.
As a researcher examining employment trends, I observed that the unemployment data for May 16 confirmed the prevailing pattern with 222,000 jobless claims filed against an expected 220,000.
Keith Alan, the co-founder of trading resource Material Indicators, expressed in a recent response on X (previously known as Twitter), “Despite the challenge of interpreting the PPI report, today’s Core Inflation figures appear to be quite clear. This is positive news stacked upon positive news.”
After that point, the analysis indicated that BTC/USD was prepared to challenge significant resistance just beneath its all-time peak prices.
In his recent post, well-known trader CrypNuevo mentioned that we are approaching a range, specifically between $66,000 and $70,000, where a significant number of liquidations in the crypto market might occur.
“The level with the highest liquidations inside this area is $69k (main liquidity level). We might consolidate or retrace first, but this cluster is the target.”
An accompanying chart showed liquidity levels around spot price from monitoring resource CoinGlass.
Analyst eyes key BTC price support to hold
From a pessimistic perspective, Alan cautioned that it might be necessary to conduct another test at lower levels to validate the commencement of a fresh phase in the broader Bitcoin bull market.
As an analyst, I’d put it this way: “The major hurdle for us right now is the 50-Day Moving Average, which hovers around $65.1k, slightly above the sell zone at $65k. Additionally, there’s a lack of substantial bid support in the price range between $60k and $61k.”
“Lastly, we’ve not seen any retest of support anywhere near the local low at $56.5k, nor have we seen a retest of either of the previous two consolidation ranges.”
Alan noted that revisiting prices below $60,000 could provide a “sound checkpoint for confirming the market’s bottom and establishing a more robust base for further gains.”
He finished by expressing his preference for observing a retest of the 21-week moving average as a potential area of support, while maintaining that his downside targets remained unaltered.
“To the upside, technical resistance at $65k, is literally getting hit right now at the time of writing. Watching to see if bulls have enough momentum to carry this above $69k.”
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2024-05-16 18:17