Bitcoin Struggles Amid Positive US Jobs Data and Dips in Supply Held by Whales
Summary:
Bitcoin's value has diminished by approximately 3.25% in the past day, outperforming the larger crypto market that fell by 3.75%. The drop in Bitcoin's value follows positive U.S job data and reduced supply by Bitcoin "whales" or large-scale holders. From a technical perspective, Bitcoin struggles to surpass the $70,000 mark with potential resistance seen at the 50-day exponential moving average at around $66,740. However, if the bullish IH&S pattern holds, Bitcoin's upward target for July could exceed $90,000.
The value of Bitcoin (BTC) has dropped roughly 3.25% in the last day, settling at $3,690 on June 8. This performance has outshined the global crypto market, which has seen a 3.75% decrease during this time. BTC/USD pair takes lead over general crypto market daily yield chart. (Source: TradingView)
The reasons behind Bitcoin's falling prices are positive job data and a minor reduction in the BTC supply owned by Bitcoin whales. Bitcoin's value has been affected by boosted bond yields which have dwindled traders' enthusiasm for the cryptocurrency.
The dip in Bitcoin's price today coincides with optimistic U.S. employment data for May. Non-farm payroll escalated by 272,000 last month, overpowering all 77 predictions in the Bloomberg economist survey. Both short-term (2-year) and long-term (10-year) Treasury yields saw a significant surge following the job data report.
The S&P 500 Index saw a loss of around 0.3% while the US dollar saw a surge. The increase in yields often signifies exorbitant borrowing costs which leads to lowered risk appetite. Therefore, investors are likely to withdraw from high-risk assets like stocks and cryptocurrencies and opt for safer investments.
Bitcoin's richest holders, or "whales," also noticed a decrease in their BTC supply. Bitcoin holders with 100,000 BTC or more saw a 0.2% drop in their holdings in the last 48 hours. It is speculated that these big investors are either distributing their holdings into lesser addresses or totally cashing out. However, still, Bitcoin supply clusters such as 10,000-100,000 BTC and 1,000-10,000 BTC have been up in recent times.
Bitcoin is finding it tough to break past the $70,000 threshold from a technical perspective. Since mid-March, Bitcoin has been unsuccessful in crossing this line decisively. Bitcoin's bullish IH&S pattern seems to be being upheld by this resistance level. Bitcoin's optimistic target for July exceeds $90,000 if the IH&S pattern follows its course.
However, a pullback from this neckline might push the BTC price towards its 50-day exponential moving average (50-day EMA) which currently stands around $66,740. (Caveat: This piece is not meant as a piece of investment advice or guidance. Trading and investing entail risks, and all investors should carry out their own scrutiny when making their decisions.)
Published At
6/8/2024 4:24:13 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.