Weekend blues seem to be gripping the cryptocurrency market as Bitcoin struggles to hold onto the coveted $70,000 mark. Historically, weekends haven’t been kind to crypto prices, and this one appears no different.
Key Data Looms: BTC’s price action is currently in a tug-of-war, grinding near support levels as traders brace for the release of crucial U.S. economic data. As of writing, Bitcoin sits at $68,301.92, reflecting a minor daily gain but a 2% increase compared to last week.
Recent attempts to maintain a price above $68,000 have highlighted its importance as a critical support level. Analyst Skew on Deribit notes the bulls’ struggle to push past resistance zones above this level. The Relative Strength Index (RSI) also indicates a weakening momentum. Skew suggests potential support around $65,000 if prices drop further.
Despite the weekend slump, there’s a silver lining. The US Bitcoin-spot ETF market continues a 12-day streak without net outflows, indicating continued investor interest.
Economic Data in Focus: Earlier this week, positive economic indicators from the US briefly pushed Bitcoin to a high of $69,485. However, jobless claims data showed a slight rise, causing a dip below $68,000. Investors are now keeping a close eye on the upcoming US Personal Income and Outlays report, with uncertainty surrounding potential Federal Reserve interest rate hikes.
Strong inflation numbers combined with positive income and spending trends could dampen hopes for a September rate cut. A cautious approach from the Fed could impact riskier assets like Bitcoin. US BTC-spot ETF market data will be crucial in gauging investor sentiment and potential price movements.
Weekend Watch
As the weekend unfolds, traders are keenly monitoring upcoming economic data releases, including jobless claims and the first revision of Q1 GDP. Unexpected results could trigger significant volatility in Bitcoin and other cryptocurrencies.
While Bitcoin faces resistance, other major coins show mixed performance. Ethereum (ETH) experiences a slight decline, while Solana (SOL) sees a modest increase. The overall market sentiment, however, remains cautious, with the BTC fear and greed index hovering at 73.
Will Bitcoin conquer the $70,000 hurdle? The answer likely lies in the upcoming economic data and investor response to potential Fed policy changes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
About The Author
