Bitcoin Struggles to Sustain Growth Amid US Jobless Claims and Anticipated Federal Reserves Cuts
Summary:
Despite initial growth at the May 9 Wall Street open, Bitcoin (BTC) struggled to maintain the momentum, with the value later falling below $61,000. This fluctuation followed the release of U.S. jobless claims data which exceeded expectations. Amid these market dynamics, some traders identify big bids in the $59-60K range. Additionally, there is anticipation in the market for two Federal Reserve cuts this year. Notably, Titan of Crypto, a popular trader, projects potential highs of $75,000 for Bitcoin at the end of the current consolidation phase.
Bitcoin (BTC), despite an initial surge at the Wall Street opening on May 9, failed to maintain a steady rise as new macroeconomic data further fueled the enthusiasm of risk-asset bulls. Figures from Cointelegraph Markets Pro and TradingView showed a fleeting BTC rise to $61,750 that could not be sustained. This momentary bump followed the newest jobless claims figures from the United States, which exceeded predictions and climbed to a nine-month high of 231,000 against an expected 212,000.
Recent hints from the Federal Reserve indicated that the labor market's ongoing strain could become instrumental in contemplating cuts in interest rates. Despite such news, BTC/USD did not rise in celebration and was noted to have fallen below $61,000 at the time.
Referring to BTC/USDT's order book liquidity data, Daan Crypto Trades, a well-regarded trader, noted that, "Substantial bids surfaced in the $59-60K range." He pointed out that the current price level makes sense, being the lower end of the range. Whether prices will seek liquidity in this area is yet to be seen, factoring in that these orders are subject to change at any moment.
Previously, Cointelegraph highlighted a steady liquidity flow both above and below spot prices while BTC/USD remained within a narrow trading spectrum. QCP Capital, in its most recent update, conjectured that such market behavior would persist. Discussing future prospects, they mentioned the market's anticipation of two Federal Reserve cuts this year, with the first likely in September. However, an invigorated spot ETF flow for Bitcoin dissolved swiftly after a robust Friday and subsequent Monday surge. Market movements did not imply an impending bearish trend, but pointed more towards a more stable, lower volatility state.
Titan of Crypto, an optimistic trader, projects possible highs of $75,000 at the conclusion of the existing consolidation window. An illustrative chart suggested the formation of an inverse head-and-shoulders pattern, allowing for minimal downward pressure beyond $55,000 if market instability were to take hold, phrasing it as, "Bitcoin might drop to the widening descending wedge's lower line in a worst-case scenario."
While Titan of Crypto anticipates Bitcoin breaching the six-figure threshold, he emphasizes the necessity for investors to demonstrate "time and patience." In an X post dated May 8, a forecast was made of possible manipulations at the "$61.5k juncture."
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Published At
5/9/2024 5:21:11 PM
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