Bitcoin traders wait for $62K as 3% BTC price gains eat up liquidity
2024.08.29 10:53
Bitcoin (BTC) sought to reclaim $60,000 around the Aug. 29 Wall Street open as United States macro data spared bulls major volatility.
BTC/USD 1-hour chart. Source: TradingView
BTC price shows strength on US macro data
Data from Cointelegraph Markets Pro and TradingView tracked local highs of $60,845 on Bitstamp, marking BTC price gains of 3% on the day.
These came as US jobless claims and GDP figures broadly adhered to expectations, with the former narrowly missing the forecast levels.
The numbers had little impact on market expectations for future financial policy changes, and the latest estimates from CME Group’s FedWatch Tool showed markets continuing to bet on a 0.25% interest rate cut by the Federal Reserve in September.
Fed target rate probabilities. Source: CME Group
“We believe that any dip in equities (and crypto) will be short-lived,” trading team QCP Capital told Telegram channel subscribers the day prior.
“With Powell and the Fed ready to kickstart a rate-cutting cycle, increased liquidity will eventually push risk assets higher. We are finally on the cusp of a rate-cutting cycle.”
BTC liquidation heatmap (screenshot). Source: CoinGlass
BTC/USD thus aimed to provide light relief to those hoping for upside continuation.
Data from monitoring resource CoinGlass revealed attempts to block that upside with liquidity struggling on short timeframes.
“Will it hold?” trading resource Material Indicators queried in part of an accompanying X post about the liquidity shifts.
Referencing an ongoing support retest on weekly timeframes, popular trader and analyst Rekt Capital remained confident.
“So far, so good,” he summarized.
“The retest continues to be successful as the week goes on. Bitcoin has also been forming Higher Lows since early July.”
BTC/USD 1-week chart. Source: Rekt Capital/X
Bitcoin trader warns of “predatory” environment
Looking ahead, fellow trader Jelle emphasized price reclaiming $62,000—an area where liquidity has nonetheless thinned out in recent days.
Related: Bitcoin price at 11x S&P 500 signals BTC is ‘rolling over’ — Analyst
“Environment remains predatory, which means your best bet remains to sit on your hands,” he nonetheless acknowledged.
“Above $62,000 — could turn into a stronger trending move again.”
BTC/USDT 4-hour chart. Source: Jelle/X
An earlier post eyed a higher low in the making while also flagging $65,000 as a key level to revisit should strength sustain.
Source: Jelle
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
