May 22, 2024
Bitcoin Price Today is $64,938 as CPI Data Boosts Risk Assets
Bitcoin price today

Bitcoin Price Today is $64,938 as CPI Data Boosts Risk Assets

Thursday, May 16, 2024: Bitcoin Price Today is $64,938, following a surge in risk assets triggered by favorable U.S. macroeconomic data. TradingView tracked BTC price movements as bullish investors tried to solidify the 7.5% gain achieved yesterday. These gains were spurred by April’s Consumer Price Index (CPI) narrowly exceeding expectations, which fueled hopes for more lenient financial conditions for cryptocurrencies and other risk assets.

BTC/USD 1-hour chart. Source: TradingView

Concerns Over Sustainability Amid Rising Open Interest

Despite the positive momentum, some immediate reactions were cautious, with market analysts highlighting rapidly increasing open interest as a potential sign of an unsustainable rally. Popular trader Credible Crypto remarked on the post-CPI conditions, stating that they represented what “we don’t want to see on a rise” in Bitcoin’s price.

Source: Credible Crypto

He emphasized the importance of the $62,000-$63,000 region as a critical support level, suggesting that Bitcoin needs to hold there to avoid a drop to $59,000-$60,000.

“Lose that and we go straight back to 59-60k. Not sure which of the two scenarios we will get atm so preparing for both.”

Fellow trader Daan Crypto Trades also noted the presence of significant ask liquidity above the spot price. On May 15, he observed, “Some massive orders placed above price. Most of it sitting between $66K-67K, which totals to over $400M+ in orders.”

“If price starts eating into these, it often ends up with a quick fill of most of orders.”

Concurrently, data from CoinGlass indicated that a substantial portion of potential short liquidations was clustered at $67,000 at the time.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Optimistic Long-Term Projections and Market Sentiment

On a more optimistic note, veteran trader Peter Brandt reiterated his long-term bullish stance on Bitcoin, sharing a favored chart interpretation with his followers on X.

BTC/USD chart. Source: Peter Brandt

Meanwhile, Michaël van de Poppe, founder and CEO of trading firm MNTrading, predicted a “calm upwards period” for Bitcoin, with the potential for altcoins to outperform. He noted that Bitcoin had strongly held its range low at $60.5K and had broken out upwards, suggesting an inevitable period of steady gains.

“This period is where I think Altcoins will start to accelerate, as confidence comes back into the markets.”

BTC/USD chart. Source: Michaël van de Poppe

Adding to the bullish sentiment, trading firm QCP Capital, in its latest market update to Telegram subscribers, speculated on the possibility of Bitcoin reaching new all-time highs. The firm stated, “We expect bullish momentum here that could take us back to the highs of 74k,” citing significant sovereign and institutional adoption, easing inflation, and the upcoming U.S. elections as aligning factors for this breakout.

Image by Pete Linforth from Pixabay

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