Bitcoin (BTC) was trying to recover $60,000 at the opening of Wall Street on August 29, but US macroeconomic data prevented the bull market from making much of a comeback.
BTC price strengthens on US macroeconomic data
According to data from Cointelegraph Markets Pro and TradingView, a local high of $60,845 was recorded on Bitstamp, meaning that the BTC price was up 3% on the day.
While the number of U.S. jobless claims and GDP figures were broadly in line with expectations, the number of claims came in slightly below expectations.
The numbers had little effect on market expectations of future changes in monetary policy, with the latest estimates from CME Group’s FedWatch tool showing that markets continue to bet the Fed will cut rates by 0.25% in September.
“We believe that the decline in stocks (and cryptocurrencies) will be short-term,” trading team QCP Capital told subscribers to its Telegram channel the previous day.
“With Powell and the Fed ready to start a rate-cutting cycle, increased liquidity will ultimately push riskier assets higher. We have finally reached the peak of the rate-cutting cycle.”
So, BTC/USD aimed to provide some relief to those hoping to continue the uptrend.
Data from monitoring resource CoinGlass suggests there may be a short-term liquidity shortage that could be used to curb the uptrend.
“Will it hold?” asked trading resource Material Indicators in part of a post on liquidity changes.
Popular trader and analyst Rekt Capital remained confident, noting continued support retests on the weekly timeframe.
“So far, so good,” he summarized.
“The retest continues to be successful as the week progresses. Bitcoin has also been forming Higher Lows since early July.”
Bitcoin trader warns of ‘predatory’ environment
Looking ahead, fellow trader Zell emphasized that the price will recover to $62,000, but liquidity has been thin in this area in recent days.
Related: Bitcoin Price Rise 11x S&P 500, Signs BTC Is ‘Rolling Over’ – Analyst
Nonetheless, he admitted, “the environment is still predatory, so it’s best to sit on your hands and watch.”
“Above $62,000, we could see a reversal into a strong trend.”
In a previous post, I mentioned that higher lows are forming and that $65,000 is the key level to re-approach if the uptrend continues.
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.