As Bitcoin (BTC) heads toward $27,000 after the May 11 Wall Street open, the bulls show a lack of strength with BTC/USD still at risk of losing further support. Despite a modest recovery from local lows witnessed the previous day, the pair remains weak even as United States macro data provides bullish cues.
According to popular trader Daan Crypto Trades, the dump was retraced but then the price quickly rolled over again. For a possible reversal scenario to be considered, bulls need to demonstrate strength by retaking the daily open. Still, many market participants are preparing for downside targets, focusing specifically around the $25,000 area.
Trader Crypto Tony shares a similar sentiment, stating that although already short, he would wait until the loss of $27,000 support before considering another short position. As it currently stands, there is no reason to short just yet.
On the other hand, trader and analyst Moustache takes a more optimistic view, delving into the longer-term price trends. Moustache points to an upcoming form of “golden cross” – a bullish interplay between the 20 and 200-week moving averages, indicating the possibility of wiping out the September 2022 bearish cross. According to Moustache, this interplay could be seen as a positive signal for BTC’s price.
In the macroeconomic context, the latest U.S. Producer Price Index (PPI) and unemployment data offer crypto investors cautious optimism. With jobless claims increasing and PPI in line with expectations of inflation continuing its downward trend, the odds point towards interest rates ceasing their rise in June. Financial commentator Tedtalksmacro highlights consistency between PPI and the Consumer Price Index (CPI) data, contributing to the expectation of a pause in June rate hikes.
Supporting this expectation, the CME Group’s FedWatch Tool’s latest readings show a market consensus exceeding 96% for a June rate hike pause.
In conclusion, while the current market disposition remains weakened with bulls struggling to gain footing, cautious optimism seeps through the veneer as positive signs emerge on a macroeconomic level. However, short-term volatility continues to make the path forward unpredictable, necessitating careful evaluation and research for those considering taking positions in the market.
Source: Cointelegraph
