Bitcoin recently displayed resilience against unsettling U.S. jobs data, although it eventually relinquished its support level of $66,000. This price movement occurred shortly after the Wall Street market opened on May 16, during which Bitcoin initially seemed to benefit from positive U.S. economic indicators.
The backdrop of this volatility includes recent U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) reports, both pivotal in shaping market sentiments. The CPI outperformed expectations, leading to gains across various asset classes, including cryptocurrencies. Meanwhile, the jobless claims, reported at 222,000 against an expectation of 220,000, also seemed to encourage a bullish outlook among crypto investors.
Amidst these developments, analysts pointed out the crucial resistance and support levels for Bitcoin. The immediate challenge was the $66,000 to $70,000 range, identified as a liquidation cluster zone. Notably, the price level with the highest liquidations within this bracket was $69,000. While some consolidation or a retracement was anticipated, this cluster remained a significant target for bulls.
On the downside, experts like Keith Alan from Material Indicators suggested that revisiting sub-$60,000 levels could be beneficial. This approach would test lower support levels and potentially confirm a more robust foundation for Bitcoin's next upward trajectory. Technical observations highlighted the 50-Day Moving Average at approximately $65.1k as a critical barrier, with further bid support thinning towards the $60k to $61k range.
As Bitcoin oscillates within these key thresholds, market watchers remain vigilant, keeping a close eye on technical resistances and the potential for upward movements. This complex interplay of economic data and market psychology continues to drive the dynamic and often unpredictable cryptocurrency market landscape.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
