Bitcoin Retains $60K Support: Anticipating Rising Market Volatility Amid US Macro Data Release
Summary:
Bitcoin begins a new week maintaining the $60,000 support level amid fluctuating market sentiment. Analysts predict the week could see increased crypto market volatility fueled by macro data from the United States and comments by Federal Reserve Chair Jerome Powell. Market observers are exploring triggers for a significant shift in Bitcoin's steady price action. In other developments, long-term Bitcoin holders are increasing their BTC exposure after a distribution period throughout 2024. Market sentiment measures are fluctuating with the Crypto Fear & Greed Index indicating possible sudden market reversals.
Bitcoin maintains the $60,000 support level cautiously as the new week begins, amidst a fluctuating market sentiment oscillating between optimism and pessimism. The steady price action of Bitcoin continues to confine itself to a limited trading scope, sparking curiosity about possible triggers for a significant shift in its pace. The current week could herald notable volatility in the crypto market, provoked by a confluence of U.S. macro data and insights by Jerome Powell, the Federal Reserve Chair, potentially impacting risk assets significantly.
It's a crucial period for Bitcoin's bullish perspective as the market has signaled a possible deeper correction lately. Traders are already predicting possible subsequent levels. The primary focus leans towards bid liquidity below $50,000, deemed a prospective zone for a long-term market floor. Meanwhile, on shorter timeframes, the BTC/USD seems more inclined towards clearing upward liquidity as the week commences.
The spotlight is now on BTC/USD's performance. The price of Bitcoin: it all comes down to $60,000. A somewhat overlooked weekly close signifies Bitcoin's firm grounding in a familiar territory as traditional financial market sessions kick off this week. The persisting stability at the $60,000 mark since its recovery on May 3 now serves as a critical threshold for bulls.
Noted analyst Mark Cullen highlights an emerging "bullish order block" of bidders showing interest slightly below $60,000. He notes that if this support fails, it could lead to revisiting former lows and potentially dropping further. On the other hand, if support remains, it could fuel another surge towards liquidity above 64-67k. Cullen's comments suggest that this week's macroeconomic data releases, particularly the Consumer Price Index (CPI) on May 14, will be crucial for Bitcoin's price action.
This week, major macroeconomic developments in the United States are in the spotlight amid an influx of data releases. The CPI will play a significant role in the inflation conversation and hopes for risk-asset interest rate cuts. Before the CPI release, however, Fed Chair Powell will deliver a speech discussing the economy, and the Producer Price Index (PPI) figures for April will be released on May 14.
Uncertainty abounds as long-term Bitcoin investors navigate the 2021 bull market based on on-chain data. On a positive note, long-term holders (LTHs) are increasing their exposure to BTC after a distribution period throughout 2024. J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, interprets this as LTH entities capitalizing on Bitcoin's lower value to expand their stakes, to potentially reintroduce them to the market during hyped phases.
In the world of crypto, as Bitcoin's price holds steady within its predefined corridor, volatility is already evident elsewhere. Crypto Fear & Greed Index, a well-known indicator measuring market sentiment, has been vacillating between conditions throughout May. The gauge measures impulsive tendencies among crypto traders based on diverse factors, indicating that the market may experience a sudden reversal when readings go extreme.
The recent decrease in Bitcoin's on-chain activity has been attributed to "fear and indecision" among traders by research firm Santiment. They noted that a collection of on-chain actions has significantly declined to levels recorded back in 2019. They emphasized that this does not necessarily entail further Bitcoin dips but symbolizes crowd fear and indecision. Readers are reminded that investments and trading involve risks and that they should conduct their own research before making any financial decisions.
Published At
5/13/2024 11:53:34 AM
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