Bitcoin surged to $71,000 as Wall Street opened on June 6, with traders closely monitoring a potential liquidity event.
The BTC/USD 1-hour chart showed Bitcoin’s price consolidating around $71,000, just below the key resistance level of $72,000. This resistance level was seen as the final barrier before an attempt to break all-time highs, a scenario still anticipated by market participants due to favorable macroeconomic events.
Both Europe and the United States played a role in boosting the bullish case for Bitcoin. The European Central Bank announced its first interest rate cut since 2019, while US jobless claims exceeded expectations.
In response to the jobless claims data, trading resource Material Indicators suggested that bad news could actually be good news for the market. Their analysis included a chart illustrating bid and ask liquidity on Binance, the largest global exchange.
Popular trader Daan Crypto Trades noted that Bitcoin’s price was consolidating as liquidity built up on both sides, potentially leading to a shakeout of both long and short speculators before an upward trend resumed.
Founder and CEO of trading firm MNTrading, Michaël van de Poppe, emphasized the importance of the $70,000 level as a key support level for Bitcoin’s upward momentum. He shared an illustrative chart to summarize his analysis.
Looking ahead, US macro data could provide further opportunities for Bitcoin bulls. The Federal Reserve has not cut rates this year, but the precedent set by the ECB, combined with ample global liquidity, has analysts leaning towards a bullish outlook.
Trading firm QCP Capital suggested that upcoming US macro data releases, such as the Consumer Price Index (CPI) for May and the Fed meeting on June 12, could potentially trigger a new all-time high for Bitcoin.
It is important to note that this article does not provide investment advice. All investment decisions involve risk, and readers should conduct their own research before making any decisions.