The weekend has arrived, and Bitcoin is once again experiencing its characteristic volatility. Traditionally, weekends in the cryptocurrency industry are marked by negative trading sentiments, and this weekend is no exception. Bitcoin is struggling to maintain its $70,000 price level in anticipation of key economic data readings.
Bitcoin (BTC) has been facing strong resistance near the $70,000 mark since briefly surpassing it on May 28th. It has since retreated to $68,000 as traders prepare for the release of significant macroeconomic data.
As of now, the value of Bitcoin stands at $68,301.92, showing a 0.7% increase since yesterday and a 2.0% increase compared to seven days ago. The global crypto market cap currently sits at $2.67 trillion, with a slight 0.46% change in the last 24 hours. Bitcoin’s market cap stands at $1.35 trillion, giving it a dominance of 50.33%.
Meanwhile, the market cap of Stablecoins stands at $161 billion, accounting for a 6.03% share of the overall crypto market cap. Bitcoin’s price action has been lacking momentum, struggling against nearby support levels. Recent attempts to maintain a price above $68,000 have emphasized the criticality of this level. The trending pair is finding it difficult to break through resistance zones above this threshold.
Skew, a well-known trader, has pointed out that bulls have been facing challenges in maintaining momentum above $70,000. Resistance was encountered around $72,000 earlier this week. Skew also noted a decrease in momentum, as indicated by the relative strength index (RSI) signals. He suggests that any further price drops should find support around $65,000. Additionally, he mentioned that sellers took advantage of price movements, while spot bids at the $67,000 low offered limited defense. Skew added, “Buyers have the opportunity to push the price towards $70,000.”
Despite a decline in total net inflows, the US BTC-spot ETF market has maintained a twelve-session streak without net outflows. Bitcoin reached a high of $69,485 before dropping below $68,000, driven by indicators from the US economy. Jobless claims in the United States rose from 216,000 to 218,000 during the week ending on May 25th.
The US economy grew by 1.3% in Q1 2024, remaining unchanged from the initial estimate. However, growth has stalled in the fourth quarter of 2023. Investors are uncertain about the direction of Federal Reserve interest rates ahead of the US Personal Income and Outlays report. The CME FedWatch Tool has increased the probability of a Fed rate cut from 47.0% to 50.6%, despite shifting bets on a September rate hike.
Strong US inflation numbers and positive personal income and spending trends could dampen investors’ expectations of a September Fed rate cut. A more cautious approach by the Federal Reserve towards interest rates could potentially impact buyers’ interest in riskier assets. Data on the flow of the US BTC-spot ETF market could be crucial in determining Bitcoin’s price trends.
As the weekend approaches, traders are closely monitoring the upcoming US macroeconomic data prints, including jobless claims and the first revision of Q1 GDP. Any unexpected results from these indicators could lead to significant volatility in the cryptocurrency and other risk assets markets.
The value of Ethereum (ETH) currently stands at $3,724.08, experiencing a slight decline of 0.4% in the past hour. However, it has seen a modest increase of 0.2% since yesterday. Over the last seven days, the value of ETH has risen by 1.5%. The fear and greed index for Bitcoin is at 73.
Lastly, the value of Solana (SOL) is now $166.32, reflecting a slight increase of 0.3% in the past hour and a 0.9% increase since yesterday. In the past week, the value of SOL has risen by 0.1%.
Reporting by Florence Muchai for Cryptopolitan.