Bitcoin (BTC) has fallen from $66,000 since Wall Street opened on May 16, with new macro data from the US fueling the rally.
Unemployed Americans argue for cryptocurrency strength
Data from Cointelegraph Markets Pro and TradingView shows BTC price volatility is up 7.5% since the previous day.
This follows the April release of the US Consumer Price Index (CPI) and Producer Price Index (PPI), the former of which beat expectations to fuel a broad-based risk asset rally.
Unemployment data for May 16 supported this trend, showing 222,000 unemployment claims compared to the expected 220,000.
“The PPI report was difficult to interpret, but today’s core inflation indicator appears to be quite easy. Good news = good news,” wrote Keith Alan, co-founder of trading resource Material Indicators. answer At X (formerly Twitter).
With this, BTC/USD is poised to attack resistance below its all-time high, analysts suggested.
“We are entering liquidation cluster territory going from $66,000 to $70,000,” said popular trader CrypNuevo. wrote Here’s some of his latest X content.
“The highest level of liquidation within this area is $69,000 (the key liquidity level). “We might consolidate or retrack first, but this cluster is the target.”
The attached chart shows the level of liquidity around spot prices from monitoring resource CoinGlass.
Analysts see key BTC price support holding.
Looking at the downside, Alan warned that a retest may be needed to confirm a new phase of the Bitcoin bull market at lower levels.
Related: Bitcoin Analysis Predicts Next $74K As BTC Price Attempts to Maintain 7.5% Rise
“The nearest hurdle is the 50-day moving average currently at $65.1,000, just above the $65,000 sell wall. The second problem is that bid support is still relatively low, in the $60,000 to $61,000 range,” he continued.
“Finally, we have not seen a retest of support close to the local low of $56.5,000, nor have we seen a retest of either of the previous two consolidation ranges.”
Alan added that revisiting levels below $60,000 would be “a healthy way to validate the bottom and lay a stronger foundation for the next rally.”
“For me, the downside target remains unchanged. I would like to see a test of support at the 21-week moving average,” he concluded.
“The good thing is that at the time of writing, the technical resistance at $65,000 is literally being hit. We are waiting to see if the bulls have enough momentum to push it above $69,000.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.