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11 June 2024 | FXGT.com

Bitcoin’s Price Action Stalls Amid Strong US Jobs Data and Fed Speculation

  • Bitcoin’s Recent Performance: Bitcoin has dropped by 1.5% over the past week, but the sideways consolidation persists in the medium term. The recent upward movement lost steam after strong U.S. jobs data on Friday reduced the likelihood of a September Fed rate cut. This led to a decline in cryptocurrencies, causing Bitcoin to drop more than 3% after attempting to breakthrough $72,000.
  • Consolidation Phase: The sideways movement has persisted for the past two weeks, with support at $66,300 and resistance at $71,500. This resistance level, established since mid-May, was rejected again on Friday following the NFP data, extending the consolidation period. Volatility has decreased to a three-month low, with the Average True Range (ATR) on the daily timeframe dropping below $1,700 from a high of $4,800 in March.
  • Key Resistance: The resistance zone between $71,500 and the all-time high of $73,800 remains significant, hindering further upward movement. Breaking through this area would signal a continuation of the long-term uptrend, potentially leading to an extended rally in cryptocurrencies.
  • Key Support: The lower boundary of the consolidation area at $66,300 coincides with the 45-day EMA, supporting bullish momentum. Maintaining above $66,300 keeps the bullish outlook intact. However, a break and daily close below this level would shift market sentiment to bearish, turning attention to the psychological support level at $60,000.
  • Bullish potential of $66,300: A retest of $66,300 level can highlight its significance by triggering strong buying interest. As a key support level, a successful test and rejection, marked by bullish patterns, could reinforce the support and reignite bullish momentum, attracting more buyers and potentially driving prices higher.
  • Impact of Federal Reserve Policy: Anticipation of Federal Reserve policy decisions continue to influence market dynamics. Investors will closely monitor the upcoming U.S. inflation data and the Federal Reserve’s policy meeting on Wednesday, which could further impact market sentiment and Bitcoin’s price trajectory.

BTC Daily Chart

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