Bitcoin (BTC) hit $71,000 at the opening on Wall Street on June 6 as traders watched for a possible drop in liquidity.
BTC price is stuck at $71,000 as interest rate cuts hit Europe.
Data from Cointelegraph Markets Pro and TradingView shows BTC price coiling below the $72,000 resistance level.
This represents the final hurdle before an assault on all-time highs. That remains on the cards for market participants as macroeconomic events fuel cryptocurrency strength.
This came from the US and Europe on this day. The European Central Bank (ECB) cut interest rates for the first time since 2019, and U.S. unemployment claims exceeded expectations.
“For Unemployment Claims: Bad New News = Good News,” trading resource Material Indicators wrote in part of a preliminary analysis of X (formerly Twitter).
The attached chart shows the bid and ask liquidity areas on Binance, the largest global exchange.
Continuing to be a popular trader, Daan Crypto Trades believes that both speculative long and short traders may falter before Bitcoin continues its upward trend.
“As liquidity builds on both sides, prices continue to move sideways,” he told X subscribers.
“There is a possibility that the bright yellow area may strain your eyes. I don’t rule out the price of combining one with the other to eliminate both before choosing a direction.”
Michaël van de Poppe, founder and CEO of trading company MNTrading, highlighted $70,000 as the next baseline level to have.
“Bitcoin’s upward momentum continues to occur,” he summarized with an example chart.
“$70,000 has been breached, and with that the important level is to hold $70,000 now to continue the all-time high.”
US macro data offers more opportunities for Bitcoin bulls
As Cointelegraph reports, Bitcoin and altcoins are preferred over the long term and could benefit from easing fiscal policies globally.
Related: Bitcoin Hash Ribbon Flashes First Buy Signal Since BTC Price $25,000
The US Federal Reserve may not have cut interest rates so far this year, but the clear precedent set by the ECB, combined with record global liquidity, has observers favoring an upside.
“Tonight’s lower-than-expected unemployment claims report and next week’s CPI release could potentially trigger a new all-time high for BTC,” trading firm QCP Capital wrote in an update to subscribers of its Telegram channel today.
“Market prices may see added momentum to the upside due to interest rate cuts.”
QCP referenced upcoming U.S. macro data prints that provide insight into inflation trends, including the May Consumer Price Index (CPI) printout due June 12.
On that day, the Federal Reserve will meet to confirm interest rate changes.
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.