Bitcoin price news: Bitcoin dips towards the lower end of its trading range, with June data poised as the potential next catalyst
Crypto News– In the aftermath of the U.S. Memorial Day holiday, the trajectory of bitcoin (BTC) has been marked by an unusual degree of stability, characterized by its confinement within an exceptionally tight trading range centered around the $68,000 threshold. However, this equilibrium was disrupted as the cryptocurrency experienced a decline, nearing the lower end of the week’s trading spectrum during the Friday morning trading session.
As the clock struck 11:45 am ET, bitcoin was observed changing hands at $67,300, a marginal 1% downturn over the preceding 24-hour period. Notably, this figure represented a more pronounced decrease of over 2% compared to just two hours earlier, when the cryptocurrency briefly surged above the $69,000 mark. Meanwhile, the broader CoinDesk 20 index also registered a modest decline of 1.1% within the same timeframe.
Despite the recent pullback, the month of May has overall exhibited considerable strength for bitcoin, boasting an impressive 11% uptick since the outset of the month, when it was trading in the vicinity of the $60,000 level. However, this performance pales in comparison to the CoinDesk 20’s robust ascent of approximately 20%, propelled by a noteworthy 31% surge in the price of ether (ETH). This remarkable upswing in ether’s valuation has been attributed to an unforeseen regulatory pivot, particularly in light of the prospects for a spot ETF linked to the digital asset.
The next catalyst may emerge from macroeconomic conditions
Throughout the current week, bitcoin has exhibited a notable lack of volatility, with its price remaining predominantly within the narrow range of $67,000 to $69,000. Interestingly, this period of subdued activity coincided with challenges encountered by various other risk assets, particularly U.S. stocks. Despite lingering close to their all-time highs, both the Nasdaq and the S&P 500 experienced declines, with the Nasdaq dropping by approximately 2% and the S&P 500 showing a decline of roughly 1.5%.
Meanwhile, the economic data emanating from the United States continued to echo the unsettling scent of stagflation. In April, the Core PCE Price Index, a key measure of inflation, rose by 2.8% year-over-year, aligning with market expectations and maintaining the same pace as the preceding month. Furthermore, the May Chicago PMI, a crucial indicator of manufacturing activity in the Midwest region, plunged unexpectedly to a reading of 35.4, significantly below the anticipated figure of 41 and marking a decline from April’s reading of 37.9. Notably, such a dismal reading in May has only been matched during the depths of the 2008/2009 global financial crisis and the unprecedented Covid lockdowns witnessed in March/April 2020.
In response to this underwhelming economic data, the bond market experienced a notable rally, with the yield on the 10-year U.S. Treasury declining by 5.5 basis points to reach 4.50%.
As the calendar turns to June, the forthcoming week is poised to provide additional insight into the state of the U.S. economy, courtesy of the eagerly awaited release of Monday’s national PMI report and Friday’s national employment report. Should these reports confirm a softening in economic conditions, potentially paving the way for a reduction in interest rates, it could serve as a catalyst for bitcoin’s endeavor to breach its all-time high above $73,000, established back in March. Conversely, robust economic data could prompt a revisit to the lows experienced by bitcoin in May.
The next catalyst may emerge from macroeconomic conditions
On the hourly chart, BTC is currently trading below the nearby support level of $68,282. As long as the price remains below this threshold, bearish sentiment prevails over bullish sentiment. If this situation persists until the end of the day, the correction may extend towards the $68,000 zone.
On the daily chart, the price of the leading cryptocurrency is significantly distant from key levels. This suggests that neither bulls nor bears have a strong grip on the market. As a result, traders should anticipate continued consolidation within the range of $67,500 to $69,500 over the coming days.
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