Bitcoin (BTC) bulls have pushed the price beyond $71,500, driven by cooling inflation and optimistic technical chart patterns. The market is now eyeing the $72,000 threshold, which could trigger the liquidation of $1.5 billion in short positions and aim for a new all-time high of $75,000.
Bitcoin and Ethereum Investors Await Data
Experts suggest the market is at a pivotal moment, with trading volumes showing a decline ahead of the expiration of $2.2 billion in Bitcoin and Ethereum (ETH) options and the release of significant non-farm payroll and unemployment data from the US.
Despite the expiration of these substantial options, the cryptocurrency market remains steady. Specifically, 17,493 BTC options worth $1.24 billion expired, demonstrating a 0.69 put-call ratio and a maximum pain point of $70,000. This indicates Bitcoin investors had the opportunity to liquidate their positions amidst persistent selling pressure. Additionally, implied volatility (IV) has dropped to 50%, hinting at a potential price decrease.
Similarly, 260,000 ETH options worth around $1 billion expired with a 0.65 put-call ratio and a maximum pain point of $3,650, below the current price of $3,813. This suggests Ethereum investors also had the chance to liquidate and potentially decrease the price. Monitoring trading volumes will be essential for further guidance on ETH’s price direction.
What Will Economic Data Reveal?
As the US Bureau of Labor Statistics prepares to release non-farm payroll and unemployment figures, expectations are high. The US economy is anticipated to add 185,000 jobs in May 2024, slightly up from April’s 175,000. The unemployment rate is predicted to hold steady at 3.9%, with wages growing by 0.3% monthly compared to 0.2% in April. An unemployment rate above 3.9% could positively influence the market.
Bitcoin has been trading sideways around $71,000 for the past two days as investors await critical economic data. Currently, Bitcoin stands at $71,047, with a 24-hour price range of $70,119 to $71,625. Low trading volume reflects decreased investor interest.
Key Considerations for Investors
Concrete Takeaways for Investors
• Monitor liquidations closely as they could influence short-term price movements.
• Keep an eye on trading volumes for insights into investor sentiment.
• Watch out for the economic data releases, as they might impact market directions.
• Note implied volatility trends for potential market shifts.
• Observe open interest in futures as it provides clues to market positioning.
Prediction of $83,000
10x Research forecasts that Bitcoin could climb to $83,000 and break resistance soon, based on the head and shoulders pattern. They highlight today or the upcoming week as crucial for this potential breakout.
Moreover, open interest in Bitcoin futures declined today before the CME Bitcoin futures market closed, with total BTC futures open interest reaching $38.04 billion.