Bitcoin Nears $71,000: Global Economic Events and Potential Liquidity Shift Shape Market Sentiment
Summary:
Bitcoin circles $71,000 as investors anticipate a potential liquidity takedown. Market participants eye the last major resistance at $72,000 before a possible new high. Crucial developments are noted from both the US and Europe, as ECB cuts interest rates for the first time since 2019 and US unemployment claims exceed expectations. Prominent market players suggest both a build-up of liquidity and maintaining the crucial $70,000 level for Bitcoin's uptrend. Trading firms pin the crypto’s momentum on forthcoming U.S. macroeconomic data releases.
On June 6, Bitcoin (BTC) hovered around the $71,000 mark as investors anticipated potential fluctuation in liquidity. Information from Cointelegraph Markets Pro and TradingView relayed Bitcoin's price movement just beneath a key resistance level of $72,000. This threshold stands as the final obstacle to launching an assault on record highs, a scenario still considered possible by market players as global economic events bolster the crypto bull case.
Key developments from both the United States and Europe were in focus that day. The European Central Bank (ECB), for the first time since 2019, implemented a cut in interest rates. Concurrently, U.S. unemployment claims were reported to exceed projections.
Trading resource Material Indicators commented on the jobless claims, stating that negative news in this regard could in fact be positive for the market. The resource also shared a chart featuring bid and ask liquidity areas on Binance, the world's largest crypto exchange.
Prominent trader Daan Crypto Trades posited that speculative long and short traders could potentially be eliminated before Bitcoin resumes its upward trajectory. Daan indicated that liquidity on both ends was accumulating as the price maintained a sideways movement.
Michaël van de Poppe, founder and CEO of MNTrading, identified $70,000 as the crucial level to maintain. He explained that Bitcoin's upward momentum was progressing, with the crucial milestone as maintaining the $70,000 marker for further ascent towards an all-time high.
Bitcoin and altcoins are generally favored to benefit from easing worldwide fiscal policies in the long term. Although the U.S. Federal Reserve has yet to decrease rates this year, the precedent set by the ECB, coupled with unprecedented global liquidity, leans towards an increase.
Trading firm QCP Capital mentioned in a Telegram channel update that a lower-than-expected jobless claims report and the upcoming CPI release could potentially catalyze a new all-time high for Bitcoin. The firm also suggested that anticipated rate cuts could lend further momentum to the rally.
The U.S. will be releasing macro data prints that offer insights into inflation trends, including the Consumer Price Index (CPI) figure for May on June 12. Also on this date, the Federal Reserve will confirm any changes to interest rates.
This news is not intended as financial advice. Each investment move carries risks, and readers are encouraged to conduct independent research before making a decision.
Published At
6/6/2024 5:01:47 PM
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