• 26 May, 2024
Market News

Bitcoin Stabilizes at $60,000; Market Eyes Upcoming CPI Data

Market experts are drawing parallels to past market phases, indicating a potential repeat of the explosive altcoin growth seen after Bitcoin previously broke its all-time high. ChartingGuy, a seasoned crypto analyst, has highlighted that the current market conditions resemble those of spring 2017, a period that precipitated significant altcoin rallies following Bitcoin’s surge.

Moreover, DaanCrypto, another prominent voice in the crypto analysis field, noted that Bitcoin is currently contending with the 4-hour 200-day moving average (MA) and exponential moving average (EMA). A decisive break above this area could signal the end of Bitcoin’s consolidation in the low $60,000s, setting the stage for further upward movements.

Bitcoin has maintained a stable position at the crucial $60,000 mark since May 3, underlining a robust bullish sentiment among investors. This steadfastness suggests a preparedness among traders to push the leading asset to higher levels, as per analyst Mark Cullen’s analysis.

According to Coinglass data, a recent analysis of order blocks also supports a bullish outlook. Near $60,250, a substantial bid block worth $65 million was identified, which could act as a launchpad for price ascension. However, resistance looms at the $62,000 mark, where sell orders await clearance.

Additionally, funding rates in the crypto derivatives markets have returned to neutral after a heated period in early 2024, suggesting a cooling off that might precede another significant trading wave.

The upcoming release of U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data is keenly awaited, with potential implications for market sentiment. Federal Reserve Chair Jerome Powell’s scheduled speech is also on the radar as investors seek clues on future interest rate decisions following three consecutive rises in CPI.

On-chain data from Santiment indicates a decline in transaction activity to levels last seen in 2019, suggesting a cautious stance among traders. Despite this, long-term Bitcoin holders are accumulating more of the cryptocurrency, reminiscent of the strategies employed during the 2021 bull run.

Echoing patterns from the 2021 bull run, long-term Bitcoin holders are once again accumulating assets, a trend spotted by on-chain analyst JA_Maartun. This resurgence in holding behavior is a positive sign for market stability and growth.

Market volatility continues to hold. According to data from Coinmarket Cap, the Fear and Greed Index currently stands at 57 out of 100, marking a decrease from the extreme greed levels observed earlier in the month. This sentiment is reinforced by an overall decline in Bitcoin’s on-chain activity, suggesting a cautious stance among traders.

As of press time, Bitcoin is exhibiting a bullish trend, recording a surge of almost 3% in the past 24 hours, with the price set at $62,640. Amid the bullish resurgence, BTC remains down on the weekly and monthly charts, recording declines of 1.50% and 2.70%, respectively. 

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