- Bitcoin is struggling to maintain momentum above $70,000, facing significant resistance and testing support levels around $67,000.
- Traders are anxiously awaiting upcoming U.S. macroeconomic data, which could inject volatility into the market and potentially push Bitcoin’s price down to around $65,000.
Bitcoin (BTC) has been grappling with significant resistance around the $70,000 mark, having briefly surpassed it on May 28. The cryptocurrency has since retreated to $68,430, with traders anxiously anticipating a key macroeconomic data release. This back-and-forth has highlighted Bitcoin’s struggle to gain upward momentum, as it tests nearby support levels. The critical support level of $67,000 has been a focal point for bulls, who have faced difficulties in propelling the price past overhead resistance zones.
Waning Momentum and Market Sentiment
Prominent trader Skew noted in a recent market update that after encountering resistance near $72,000, Bitcoin bulls have struggled to maintain momentum above $70,000. Skew emphasized the “waning momentum,” as indicated by relative strength index (RSI) signals, suggesting that any further dips in price should find support around $65,000. He observed that sellers have been capitalizing on bounces, with minimal spot bids defending the $67,000 low. “It’s here if buyers wanna swing price towards $70K,” Skew remarked.
Another trader, Roman, pointed out the declining volume on Bitcoin’s revisits to the lower end of its short-term range. He expressed optimism about bullish price action emerging as Bitcoin approached support levels, noting, “Low volume + lower price = a non-confident downtrend.” Roman is eyeing short-term reversals in this area to initiate long positions, demonstrating a cautious optimism among some market participants.
Awaiting Economic Data: Potential for Volatility
Traders are keenly awaiting the upcoming U.S. macroeconomic data prints, including jobless claims and the first revision of Q1 GDP. These reports have the potential to inject significant volatility into crypto and other risk assets, particularly if the results deviate from expectations. BitBank, a Japanese crypto exchange, has warned that a hotter-than-expected inflation data print could lead to further losses for Bitcoin, potentially pushing its price down to around $65,000.
At the time of writing, Bitcoin was priced just under $67,800 during the European morning session, showing little change over the previous 24 hours. The broader market also saw declines, with the CoinDesk 20 Index (CD20) dropping nearly 2%, and meme coins SHIB and DOGE leading the losses, down 5.2% and 3.7% respectively.
Looking Ahead: ETF Developments and Regulatory Moves
In other market developments, the listing of a spot ether ETF by the end of June is a “legit possibility,” according to Bloomberg analyst Eric Balchunas. This follows BlackRock’s amended S-1 filing, indicating a “seed capital investor” had purchased the initial shares for the proposed product. Additionally, the New York Stock Exchange is considering offering crypto trading if the regulatory landscape becomes clearer. NYSE President Lynn Martin highlighted the strong demand for regulated crypto products, pointing to the success of Bitcoin ETFs as a potential catalyst for broader acceptance and integration.
As traders navigate these turbulent waters, the interplay between economic data releases and regulatory developments will likely continue to shape Bitcoin’s trajectory in the coming weeks.
