Bitcoin Faces Market Turbulence as it Nears $60,000 Amid Economic Data Releases
Summary:
Bitcoin (BTC) navigates towards a range low retest nearing $60,000 as the final week of June unfolds. Both upcoming economic data releases including the US unemployment figures and the May print of the Personal Consumption Expenditures (PCE) Index, and Bitcoin's recent 7% drop since June, contribute to an unsettled market. The resilience of bullish investors is challenged with the critical resistance deepening and Bitcoin's value disappointing after six weeks low of $62,128. Predictions of a potentially tough road for altcoins and interest in Bitcoin 'whale' activity are growing amid the ensuing crypto market volatility.
The final week of June has seen Bitcoin (BTC) heading towards a retest of the range low as it approaches $60,000. Following a drop of 1.25% after the close of trading on June 24, BTC/USD is challenging the resilience of bullish investors as it continues to penetrate critical resistance. The outcome of this market activity is the primary concern for the coming days, with the end of the month in sight. So far, Bitcoin has surrendered multiple moving averages in addition to plunging short term investors into a loss by falling below their average cost basis. The resulting impact has been a temporary disruption in demand, with a particular spotlight on 'whales' as prices hit a month-long low.
Additional factors contributing to this week's market turbulence include the release of US unemployment figures on June 28 and adjustments to the Q2 GDP figure a day later, followed by the Federal Reserve's preferred measure of inflation. In light of these pressures, Bitcoin faces a challenging task if it is to make a comeback before the month and quarter-end mark, with BTC/USD currently witnessing a 7% drop since the beginning of June.
As BTC price experiences new lows after six weeks, Cointelegraph explores the current market dynamics and examines primary concerns among investors as the week proves important for the market.
Bitcoin disappointed as it started the week with a steady drop to $62,128 on Bitstamp. This represents the lowest rate since May 15, with the week and the quarter-end coming soon. Bulls are now grappling with a month-to-date drop of 7%.
Crypto Ed, a popular trader, has indicated that altcoins could face a potential 20% drop owing to the current situation with Bitcoin, whose price has plunged more than expected.
Key levels within Bitcoin's multi-month trading range have been identified by fellow trader, Daan Crypto Trade. He has also warned that failure to bounce back could lead to a range low retest.
The macroeconomic data spiel due later in the week is expected to create significant ripples in the market. This includes US jobless claims, revised Q2 GDP, and the May printout of the Personal Consumption Expenditures (PCE) Index. The latter is the Federal Reserve's favourite measure for tracking inflation progress.
A stark contrast has arisen as Bitcoin and cryptocurrencies grapple with weaknesses while US stocks thrive. Notably, the S&P 500 made new highs last week, casting light on an unexpected inverse correlation with Bitcoin.
As Bitcoin moves closer to $60,000, experts are scrutinizing whether the current levels present appealing trading prospects for ‘whales.’ Despite data demonstrating that certain classes of whales increased their BTC exposure this quarter, the overall picture lacks consistency.
As of June 24, the Crypto Fear & Greed Index stood at 51/100, nearing its 2024 low. Despite a slight decrease in market cap, the shift in sentiment is profound. Presently, market sentiment hovers around 'fear' despite nearing 'extreme greed' a week ago.
Please note, this article doesn’t provide investment guidance or suggestions. Each investment or trading movement carries risks, and it is recommended that readers conduct their research before making a financial decision.
Published At
6/24/2024 11:12:02 AM
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