Bitcoin Struggles Below $69K Ahead of Key Economic Data Release

In this post:

  • Bitcoin surged by about 1% on Thursday, May 30, closing the session above $68,000 with a noted struggle to hit the $70K mark.
  • US Personal Income and Outlays Report, Fed chatter, and US BTC-spot ETF market-related updates will define the crypto weekend as May 2024 closes.
  • Ethereum struggles to maintain a break above the $3,800 price level while altcoins and meme coins see red trading hours.

The weekend is here, and Bitcoin’s volatility has kicked in. Historically, weekends in the crypto industry have been known for negative trading sentiments. This weekend is no different. BTC struggles to maintain its $70,000 ahead of key economic data readings.

Also Read: Bitcoin Price Prediction 2024-2030: Will BTC Price Surpass $100K Post-Halving?

Bitcoin (BTC) has been facing strong resistance near the $70,000 mark since briefly surpassing it on May 28. It has traded back to $68K as traders braced themselves for a significant macroeconomic data release. 

Bitcoin Traders Witness Market Decline

As of this writing, Bitcoin’s value stands at $68,301.92, reflecting a 0.7% increase since yesterday and a 2.0% increase compared to seven days ago. Today, the global crypto market cap stands at $2.67 Trillion, with a slight 0.46% change in the last 24 hours. Currently, BTC’s market cap of Bitcoin stands at $1.35 Trillion, indicating a Bitcoin dominance of 50.33%. 

Meanwhile, Stablecoins’ market cap stands at $161 Billion, representing a 6.03% share of the overall crypto market cap. Bitcoin’s price action lacked momentum, grinding against nearby support levels. Recent bullish attempts to maintain a price above $68,000 have highlighted the level’s criticality. The trending pair has found it challenging to ascend past resistance zones above this threshold.

In a recent market update, Skew, a well-known trader on X, pointed out that bulls have been facing challenges maintaining momentum above $70,000. Earlier this week, traders encountered resistance around $72,000. 

Skew also noted a decrease in momentum, as indicated by relative strength index (RSI) signals. Skew suggests that any additional price drops should be supported around $65,000. Additionally, he mentioned that sellers capitalized on price movements, while spot bids at the $67,000 low provided limited defense. Skew added, “It’s here if buyers wanna swing price towards $70K.”

BTC ETF Maintain Inflows

Despite declining total net inflows, the US BTC-spot ETF market maintained a twelfth consecutive session without net outflows.

Indicators from the US economy propelled Bitcoin to a high of $69,485 before a decline to below $68,000. Jobless claims in the United States rose from 216k to 218k during the week ending May 25. 

Also Read: Weekly Crypto Price Analysis: BTC, ETH, BNB, SOL, XRP, ADA, And DOGE

In Q1 2024, the United States economy grew by 1.3%, which remained unchanged from the initial estimate of 1.3%. Nevertheless, growth halted in the fourth quarter of 2023.

Investors remain uncertain about the direction of Federal Reserve interest rates ahead of the US Personal Income and Outlays report. On Thursday, the CME FedWatch Tool increased the probability of a Fed rate cut from 47.0% to 50.6% despite shifting wagers on a September rate rise.

Bitcoin Struggles Below $69K Ahead of Key Economic Data Release
Source: CME FedWatch Tool

Strong US inflation numbers and positive personal income and spending trends could dampen investors’ expectations for a September Fed rate cut.

A more cautious approach by the Federal Reserve regarding interest rates could potentially affect buyers’ interest levels in riskier assets. US BTC-spot ETF market flow data could be crucial in determining BTC price trends.

Traders Monitor Market Data

As the weekend draws in, traders keenly monitor the upcoming U.S. macroeconomic data prints. These include jobless claims and the first revision of Q1 GDP. Any unexpected results from these indicators could potentially lead to significant volatility in crypto and other risk assets.

Today, the value of Ethereum (ETH) stands at $3,724.08, experiencing a slight decline of 0.4% compared to an hour ago. However, it has seen a modest increase of 0.2% since yesterday. The current value of ETH has increased by 1.5% in the last seven days. BTC’s fear and greed index sits at 73.

Finally, the value of Solana (SOL) stands at $166.32, reflecting a slight increase of 0.3% in the last hour and a 0.9% increase since yesterday. The current value of SOL has increased by 0.1% in the past week.

Cryptopolitan Reporting by Florence Muchai

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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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