Bitcoin (BTC) is maintaining its support at $60,000 as market sentiment remains uncertain between bullish and bearish. The price action of BTC is tightly bound within a narrow trading range, leaving many wondering what could trigger a significant change in pace. This week is expected to bring increased volatility to the crypto market, as United States macro data and comments from Jerome Powell, the chair of the Federal Reserve, could have a significant impact on risk assets.
Bitcoin bulls have a lot at stake, even within the current range. The market has already hinted at a deeper correction, and traders are identifying potential levels for the next move. One area of focus is the bid liquidity below $50,000, which is seen as an attractive zone for a longer-term market bottom. However, in the short term, BTC/USD appears to be more interested in clearing liquidity to the upside.
The current state of BTC/USD performance shows that the price is still firmly within familiar territory. The weekly close went largely unnoticed, reinforcing the fact that Bitcoin is still holding above $60,000 and is breaking the downtrend. Analysts have highlighted the presence of a “bullish order block” just below $60,000, indicating strong buyer interest at that level.
The macroeconomic data releases this week, particularly the Consumer Price Index (CPI) on May 14, are expected to be crucial for BTC price action. The $60,000 zone is significant not only because of bids but also because key moving averages and other support trendlines converge at that level. Traders have observed a “bull market support band” that has been supporting prices, and there is a cloud of ask liquidity waiting above $62,000 that could become the next battleground for the spot price.
The focus this week will be on macroeconomic developments in the U.S. The CPI data will be closely watched as it plays a major role in the inflation debate and could impact risk assets and interest rate expectations. Additionally, Federal Reserve Chair Powell’s public speaking appearance will be closely scrutinized for clues about future policy moves.
Bitcoin hodlers are currently increasing their exposure to BTC after distributing it to the market throughout 2024. This suggests that long-term holders are taking advantage of the low price to accumulate more coins and plan to reintroduce them to the market during hype phases.
The current funding rates in the crypto market remain neutral, regardless of near-term price moves. This indicates that the market is in a state of indecision and is waiting for more varied conditions to return. The Crypto Fear and Greed Index is currently at a fairly neutral reading of 57/100, reflecting the uncertainty in the market.
In conclusion, Bitcoin is holding steady at $60,000 as market sentiment remains uncertain. Traders are closely monitoring key levels and macroeconomic developments to determine the next move for BTC. Long-term holders are accumulating more coins, while funding rates and market sentiment indicate a state of indecision.