Bitcoin (BTC) opened strong on Wall Street on September 10, not allowing the price of BTC to fall.
BTC price volatility is expected as macroeconomic data comes in.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD fell slightly to $56,530 on Bitstamp before retargeting $57,000.
Risk assets avoided major moves ahead of the US Consumer Price Index (CPI) for August, which is scheduled to be released on September 11, alongside the first presidential debate between Donald Trump and Kamala Harris.
“Macro uncertainty dominates crypto markets ahead of the presidential debates, with the 30-day correlation with the MSCI World Stock Index reaching 0.6, nearing a two-year high,” trading firm QCP Capital wrote in part of a recent announcement to subscribers to its Telegram channel.
QCP showed keen interest in BTC price volatility returning in the next 24 hours, saying the options market is “likely to move more than 3.3% from the current 56.8k until the discussion after expiry tomorrow.”
“While Bitcoin is generally seen as ‘Trump’s deal’ due to Trump’s enthusiastic support of cryptocurrencies, I think something truly amazing could happen if Harris were to mention cryptocurrencies positively during the campaign,” the article continued.
After BTC/USD fell below $53,000 last week, anticipation has been running high among traders.
“World stocks wiped out a whopping $4.1 trillion in market capitalization last week, their biggest decline in two years,” the trading information agency The Kobeissi Letter said in a September 9 dedicated X post, citing data from Bloomberg Terminal.
“This is double the previous maximum withdrawal amount in 2024.”
At the time of writing, BTC/USD was up 3.7% from its weekly open, but market participants said it was too early to be optimistic.
Popular Trader Skew commented on the day, “Good 1D close but more confirmation is needed for a divergence to show,” noting that a bullish divergence was showing on the Relative Strength Index (RSI).
“The first confirmation is a recovery of the previous low of 57.4K area.”
Skew added that the RSI needs to remain above 50 to provide further confirmation of a recovery. At the time of writing, the daily RSI was at 44.9.
“It’s the same lethargic follow-through and lack of urgency that we’ve seen after every pump so far,” fellow trader Crypto Chase told X Follower.
‘As I said last night, this market has not yet proven that it can provide adequate bullish continuation, so there is no trade for me at the moment. Show them that it can and I will be more open to them in the future.”
Bitcoin ETF recovers $700 million in losses
The hopeful news comes from the latest institutional inflow data for U.S. spot Bitcoin exchange-traded funds (ETFs).
Related: Bitcoin Speculators Repeat Risk Reduction in 2021 as Exposure Drops by 21.6K BTC
As of September 9, a total of $28.6 million had been inflowed, marking the first net increase since August 26.
Data from Farside Investors, a UK-based investment firm, showed that there was a net outflow of more than $700 million from ETF products in the previous week.
“After eight consecutive days of declines, BTC spot ETF flows have turned positive, and we reaffirm our structurally bullish stance for Q4,” QCP concluded on its long-term outlook.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.