Bitcoin Nears $66,000 Amid US Data Surge and Mixed Market Predictions
Summary:
On May 16, Bitcoin hovered around $66,000 following new US macroeconomic data, triggering a surge in risk-assets. Despite skepticism from some traders, potential short liquidations are predicted to cluster at $67,000. Notable market observers predict a 'calm upwards period' and the resurgence of Bitcoin to the previous highs of $74,000 driven by multiple factors including substantial institutional adoption, mild inflation, and upcoming US elections.
The digital currency Bitcoin (BTC) hovered around the $66,000 mark on May 16, following an upswing in risk-assets motivated by new United States macroeconomic data. The BTC/USD 1-hour timeline, sourced from TradingView, tracked the moves as the crypto enthusiasts sought to consolidate their previous day's gains of 7.5%. These profits were triggered by the marginal outperformance of April's Consumer Price Index (CPI) forecast, thus sparking hopes for a relaxed financial climate for cryptocurrencies and other risk-assets in the future.
However, the money market reacted to this with a hint of skepticism. A steadily increasing open interest prompted commentators to question the sustainability of Bitcoin's jump. Well-known trader Credible Crypto articulated the post-CPI circumstances as undesirable for a Bitcoin price climb. He emphasised that staying within the 62-63k zone was crucial to avoid dipping to 59-60k. He predicted that a drop would immediately plummet the value back to 59-60k, while being currently unsure of which of the two outcomes is more probable.
Trader Daan Crypto Trades, meanwhile, flagged an increased ask liquidity above the current price. He mentioned massive orders- most of them in the range of $66K-67K- placed above the price. If these orders start consuming the price, they often result in a swift filling of most orders.
According to CoinGlass, a monitoring resource, most potential short liquidations were gathering at the $67,000 mark.
In contrast, seasoned trader Peter Brandt was more upbeat, firmly believing that Bitcoin would continue its upward journey in the long haul. Michaël van de Poppe, founder and CEO of MNTrading, anticipated a tranquil growth period for Bitcoin, with altcoins possibly outperforming.
Trading firm QCP Capital envisaged a renaissance of new record highs for Bitcoin, attributing bullish momentum that could return the value to the 74k high mark to the alignment of factors such as substantial sovereign and institutional adoption, subdued inflation, and impending US elections.
Please remember that this article doesn't include investment advice or recommendations. All investment and trading actions entail risks, so readers are advised to undertake their individual research before deciding.
Published At
5/16/2024 10:25:43 AM
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