As the price of bitcoin hits $61,000, buyers try to reverse the flow of excess flow around the Wall Street open.
Around the Wall Street open on August 29, Bitcoin BTC $59,265 attempted to recover $60,000 as United States macro data saved bulls significant turmoil.
Bitcoin price rises in response to US macrodata
Local highs of $60,845 on Bitstamp were recorded by data from Cointelegraph Markets Pro and TradingView, indicating 3% daily advances in the price of bitcoin.
These were announced as US jobless claims and GDP data mostly met forecasts, with the former barely falling short of levels anticipated.
Market expectations for potential adjustments to financial policy were not much affected by the statistics; according to the most recent estimates from CME Group’s FedWatch Tool, markets are still pricing in a 0.25% interest rate drop by the Federal Reserve in September.
We think that any decline in stocks (and cryptocurrency) will be temporary, members of the trading team QCP Capital stated on the Telegram channel the day before.
A cycle of rate cuts, which Powell and the Fed are poised to initiate, will eventually drive up risk assets due to increasing liquidity. At last, a round of rate cuts is about to begin.
Therefore, BTC/USD sought to offer some solace to individuals who were looking for further upside.
Attempts to obstruct that upswing were shown by data from the monitoring tool CoinGlass, as liquidity was having difficulty on short periods.
Is it going to hold? exchangeable resource A portion of the preceding X post asked Material Indicators about the swings in liquidity.
Rekt Capital, a well-known trader and analyst, expressed confidence by citing a continuous support retest on weekly timeframes.
Thus far, so good, he concluded.
As the week progresses, the retest remains successful. Since early July, Bitcoin has also been creating Higher Lows.
A bitcoin trader alerts us about the “predatory” surroundings
Future outlook: Jelle, a fellow trader, highlighted price recovering $62,000, an area where liquidity has decreased recently despite this.
He acknowledged that the environment is still predatory and that sitting on your hands is still your best option.
Above $62,000 — has the potential to resume as a stronger trending move.
An earlier post mentioned $65,000 as a crucial level to check in case strength holds, and it also pointed out that a higher low was in the works.
The price of bitcoin continues dropping below $60K. Here’s why
There is more to the story than just a decline in the demand for Bitcoin ETFs, as many analysts claim to be the main cause of the cryptocurrency’s price slump.
For a full week, Bitcoin BTC $59,278 has battled to stay over $60,000. The most recent rejection happened on August 27. Following a two-day correction of 9.9%, which saw Bitcoin drop to a low of $57,918 on August 28, leveraged BTC longs on derivatives exchanges had to be pushed off the market for $143 million. Now, traders are wondering why Bitcoin is unable to surpass $60,000.
Outflows from spot BTC ETFs are a lagging measure of the demand for bitcoin
Certain commentators have attributed the current decline to the unsatisfactory outflows from spot Bitcoin exchange-traded funds (ETFs). But such data is usually reflexive, meaning that traders tend to become negative when a news event changes their outlook. More importantly, the most recent correction to Bitcoin occurred on August 29 in sync with changes in the S&P 500 index.
The rapid spike in US Treasury yields on the 2-year bond, which had earlier dropped to 3.85%—the lowest level in more than three weeks—was one notable development before this occurrence. But on August 29, there was a dramatic turnabout that sent the yield to 3.90%, indicating that investors were selling these assets in favor of ones with greater yields.
The uncertainty surrounding Nvidia’s corporate earnings, which were disclosed after the stock market closed on August 29, and the impending July US Personal Consumption Expenditures (PCE) index on August 30 is said to have contributed to this decreased risk appetite, according to a Zacks Research note.
Investors were worried at the moment that a high inflation number would cause the central bank to postpone its planned interest rate reductions.
Even though the results were better than expected, Nvidia’s stock took a hit, falling to its lowest point in two weeks during after-hours trade.
Regarding the inflation measure, the PCE increased 2.6% year over year, which did not come as a surprise to investors and increased their belief that the US Federal Reserve (Fed) will soon loosen some of its tight monetary policies intended to reduce inflation.
As a result, the market’s pricing of a 100% chance of an interest rate cut in September and traditional finance investors’ concerns, which stem from the heavy reliance on the growth of tech companies driven by AI demand, are to blame for Bitcoin’s sharp disapproval at the $61,000 level on August 29.
In other words, even somewhat unfavorable economic data can trigger big fluctuations in fixed-income markets, which then have a knock-on effect on the stock market and impact the price of Bitcoin. This, however, does not adequately explain why Bitcoin was unable to hold onto the $60,000 support level on earlier occasions during August.
Although Bitcoin is currently among the top 10 globally traded assets, more growth is yet potential
The $1.2 trillion market capitalization of Bitcoin should be compared to other currencies and financial markets, not only the cryptocurrency’s nominal price. At this point, Bitcoin is already ranked in the top 10 worldwide financial instruments, surpassing both the largest chipmaker in the world, TSMC, and the Berkshire Hathaway company, led by Warren Buffett.
To put this into point of view, Berkshire Hathaway’s annualized profits come to $121 billion. With that amount of net income, the corporation could buy the whole market capitalization of Bitcoin in ten years. Actually, the corporation has $277 billion in cash and equivalents on hand. At $60,000, it would be sufficient to purchase 4.61 million Bitcoins, or 23% of all currencies presently in circulation.
In terms of base money, which includes actual money and bank reserves kept by commercial banks at the corresponding central banks, Bitcoin’s $1.2 trillion valuation is comparable to the British pound. Based on this analysis, the United States dollar, the euro, the Chinese yuan, and the Japanese yen are the only currencies that remain rivals to Bitcoin.
These basic indicators don’t seem to be enough to keep the price of Bitcoin below $60,000. They do, however, imply that traders are probably doubting the rate of adoption as it is right now, as well as the magnitude of the Bitcoin exchange-traded fund market and the utilization of the Bitcoin network as a resolution layer. Investors seem to be placing more weight on the relative stability of the world’s greatest economies and the rise of the IT sector at the moment, but this attitude might change quickly.
Bitcoin Continues Its Declining Trend, Dropping below $58K, but There May Be Some Upside Excitement Next Week
With the largest cryptocurrency in the world expected to end the month with a double-digit percentage loss, August has been a difficult month.
The price of bitcoin continued its flat-to-downward trend on Friday, and it is currently down 12% from August.
Over the past few weeks, there has been a discernible trend of values increasing during Asia hours of trading and declining during U.S. hours.
The coming week could see a resurgence of volatility combined with new U.S. economic data.
Bitcoin (BTC) is once again heading lower during U.S. trading hours, continuing a trend that has emerged over the past several weeks. The price of BTC dropped to $58,000 just before noon on the east coast.
At $58,200, bitcoin has decreased by less than 4.4% in the last 24 hours, outpacing the 5.6% loss of the CoinDesk 20 Index, a measure of the broader market. Cardana (ADA), Chainlink (LINK), and Ether (ETH) are a some of the index components that have dropped more than bitcoin. With a 9% loss, Solana (SOL) is having the worst session.
Bitcoin has dropped over 12 percent for the month just over a day after August ended, more than offsetting what was considered a successful July. Ether has now dropped 25% for August, bringing its gain for the year to just 7%. In addition, Solana is down 25 percent for August and has advanced 31% so far this year.
Get Asia, sell America
Those who believe that this trite price activity is familiar are not delusional. Writing earlier on Friday, Miles Deutscher stated, “Asia bids, America dumps.” According to Deutscher, during the last two weeks, the total return for bitcoin while trading hours in Asia has been above 5%, but during U.S. hours, the cryptocurrency has recorded a negative return.
“Like clockwork,” he continued moments earlier, when bitcoin started to decline in the US morning.
A shift in the future trend?
The price of bitcoin has dropped more than 20% since reaching an all-time high of around $73,500 over five months back, despite some encouraging signs such as increasing institutional usage.
At this stage, bulls may find it difficult to see anything that could improve the shoddy action. When the United States returns from its Labor Day weekend the following week, things could become interesting though, as fresh economic data could change the overall picture.
Next week, the Friday, September 6, Nonfarm Payrolls Survey for August will be the main source of data. The dismal jobs report from July probably served as the tipping point for the Fed to announce a rate drop in September. But as of right now, the market is only expecting a meager 25 basis point decrease in mid-September. However, investors may swiftly price in a 50 basis point shift by the central bank if there is a second consecutive bad jobs report, which would provide a significant boost to risk markets, including bitcoin.
Naturally, a positive September jobs report and the ensuing easing of the market’s expectations for looser monetary policy would represent the opposite scenario. Whatever transpires, there will undoubtedly be volatility coming up, with roughly a half probability that it will be positive. The bulls would gladly take those odds at this moment.
A “insane” BTC whale purchases one thousand bitcoins. Binance selling hits a low of under $58,000
Bitcoin whales seize the opportunity to purchase BTC at a discount, while spot sellers respond erratically in a volatile trading environment.
August 29 saw Bitcoin retarget $60,000 as markets recovered from another round of irrational selling.
45,000 BTC are shed by Binance
Bitcoin’s price behavior, as seen by information from Cointelegraph Markets Pro and TradingView, tied the lowest price in two weeks of $57,900 on Bitstamp before rising.
The day before, traders put pressure on BTC/USD, blaming weakness on spot selling on Binance, the biggest global exchange.
The exchange was embroiled in a dispute regarding cash from users in Palestine, and the sell-off spiked particularly during US trading hours.
Data from the monitoring tool CoinGlass showed that Binance’s Bitcoin balance dropped abruptly by 45,000 BTC.
The CEO and founder of trading company MNTrading, Michaël van de Poppe, so forecast a decline to as lower as $56,000, saying that the fall of the $61,000 barrier on shorter time frames was “crucial.”
Large-volume investors provided more positive signals, with analytics tool Lookonchain emphasizing a whale purchase valued at around $60 million.
According to earlier studies by Santiment, purchasing the plunge was already “just fine” for those who hodler whales and sharks at about $59,000.
Part of a post on X stated, “Wallets with 10–10K BTC have jointly gathered 133.3K more coins over the past month whereas minor traders still anxiously transfer their holdings to them.”
Long-term “merged support” is being retested by BTC
Rekt Capital, a well-known trader and analyst, believes that the weekly consolidation pattern for BTC/USD within a shrinking wedge is still intact and is ready for a breakout.
He provided a chart on the day and indicated that Bitcoin had, in fact, made a Higher Low (light blue) and remained over the Weekly level (black; $55737).
Furthermore, Bitcoin has developed a base at a weekly level that is considerably higher—roughly $58,000—which is serving as consolidated support this week. We are currently repeating the testing of this confluent support.
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