- Recent macroeconomic data and stock market recovery are influencing Bitcoin’s price.
- Analysts highlight the importance of Bitcoin maintaining the $65,000 support level.
Bitcoin’s price has revisited the $65,000 mark following the Wall Street opening on July 25. Currently priced at $67,237, the cryptocurrency has experienced a slight 5% increase over the past 24 hours.
This was coupled with a rally in U.S. equities from their worst performance in 2022. The price of Bitcoin has slightly recovered from an initial sell-side pressure, which was attributed to trading algorithms and large trading from an entity known as an ‘aggro seller.’
Popular analyst Skew explained how liquidity games influenced Bitcoin’s price, stating that aggressive sellers moved the price down before passive buyers came in. This pattern of price movement is characterized by positions being closed out several times until the market is net long. Skew expects that this momentum can be reversed and initiates reversion trades, consequently.
ah there’s the pre-market unwind in $ES & $NQ
~ prices bouncingtypically happens 30min before open
bigger flows around open & following 1H
~ then we know if the bounce is sustainable or instantly faded lol— Skew Δ (@52kskew) July 25, 2024
Recently, the US stock market has been recovering from losses. The Nasdaq 100 dropped by 3. 6% on July 24th, its worst single-day decline since November 2022, while the S&P 500 dropped by 2%.
Macroeconomic data influences market sentiment
Recent macroeconomic data has added to the current market volatility. The Personal Consumption Expenditures (PCE) Index, which is a measure of inflation, was also lower than expected. This could be a positive sign for risk assets as lower consumer spending puts pressure on the central banks to cut interest rates.
However, initial and ongoing jobless claims data also missed the forecast, indicating the strength of the labor market. This is a negative factor that lowers the chances of interest rate cuts at the Federal Reserve meeting scheduled for the 31st of July.
Anticipation is building over U.S. presidential candidate Donald Trump’s potential involvement in the Bitcoin 2024 conference in Nashville. Trump’s recent public support for cryptocurrency and proposed policy plans have influenced bullish sentiment within the market. Speculation also surrounds the possibility of Trump creating a U.S. strategic reserve in Bitcoin if elected.
Analyst emphasizes importance of a $65,000 support level for Bitcoin
Rekt Capital, a trader and analyst, has focused on the importance of Bitcoin price at the $65,000 mark. In the view of Rekt Capital, the failure to hold this level as support is good for the short-term Bitcoin outlook.
According to the analyst, a daily close above $ 65,000 is pivotal to contain price movements within the $65 000 and $ 71,500 mark. Rekt Capital also highlighted that Bitcoin could possibly break its past record in the next two months, given the present market standing and analytical signs.
Cole Garner, a well-known market commentator, pointed out that the aggregate spot BTC order book remains skewed towards the downside. Garner’s assessment suggests that Bitcoin may experience continued sideways movement rather than a sustained rally.
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