Bitcoin Holds $70,000 Support Amid Fresh US Macro Data and Mixed Market Sentiment
Summary:
On April 11, Bitcoin (BTC) maintained a $70,000 support level, largely owing to fresh U.S macro data. The Producer Price Index (PPI) for March came in lower than expected, which boosted the market sentiment. However, forecasts indicate the Federal Reserve may delay lowering interest rates. The focus is on the upcoming block subsidy halving and current BTC price structures. Despite recent price increases, exchange funding rates remain low, providing further optimism. The $69,000 level is considered crucial for future movements, and traders seem reluctant to long BTC due to consecutive rejections near record highs.
On the cusp of the Wall Street open on April 11, Bitcoin (BTC) staunchly upheld its $70,000 support, its posture boosted by fresh macro data from the United States. A glance at data from Cointelegraph Markets Pro and TradingView revealed the unpredictable swing of BTC prices, with the bulls maintaining a firm grip on the previous day's gains.
Adding a shot of confidence to the mood about risk-assets was the March instalment of the Producer Price Index (PPI) which, rolling out under forecasts at a 0.2% monthly rate, offset the previous overshoot of the Consumer Price Index (CPI). Despite presenting a somewhat varied snapshot of inflationary pressures, it seems that markets might have to brace for a longer wait for the Federal Reserve to slash interest rates.
Keith Allen, co-founder of trading resource Material Indicators, expressed his uncertainty over the significance of these financial reports in the wake of the recent reactive data on inflation. Allen, along with others, has shifted his attention to more pertinent issues such as the impending block subsidy halving and ongoing BTC price structures.
Allen highlighted the bullish outlook on BTC, underpinned by a series of higher lows, while the bearish perspective focused on the inability of the bulls to validate an R/S flip at the trend line, $69k, or the 21-Day Moving Average. Allen posited that $69,000 is the "most crucial" figure to monitor. A video supplementing his comments included a graph detailing the liquidity of the BTC/USDT order book on the globally-renowned Binance exchange, showing sellers gathering around $73,000 and bid support solidifying near $67,000.
Observers keyed into developments on exchanges have drawn optimism from the landscape there, as funding rates have remained low, despite the recent price surge. Co-founder of the statistical analysis platform Look Into Bitcoin, Philip Swift, asserted that it was the first time fairly balanced funding rates have been spotlighted since BTC breached the $70,000 mark. He noted that Bitcoin needed such uneven consolidation to purge aggressive players trying for leverage long.
Daan Crypto Trades, a famed trader, suggested that traders are now "reluctant" to long BTC following sequential rejections near record highs. He identified $71.5K as the crucial point to breach and sustain, after which reaching those all-time highs should only be a matter of time.
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Published At
4/11/2024 4:36:32 PM
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