Bitcoin (BTC) shrugged off the latest United States unemployment data on March 21 as traders remained optimistic for a prolonged consolidation period for BTC price.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering around $66,000.
The U.S. jobless claims came in lower than expected as the Federal Reserve indicated plans to lower interest rates despite persistent inflation. Risk assets, including Bitcoin, reacted positively to the Federal Open Market Committee (FOMC) meeting on March 20, with the S&P 500 reaching new all-time highs and Bitcoin gaining 12%.
However, some traders were not in a hurry to enter the price discovery phase. Popular trader Aksel Kibar expressed his satisfaction with the current situation, stating that it was an ideal condition for him. He had previously mentioned in his Bitcoin analysis in March that he hoped for a period of sideways trading below the $69,000 level before a breakout to new all-time highs.
Another trader, Bob Loukas, believed that even a dip to lower levels than the recent ones would be beneficial. He stated that there was a fairly clean path for Bitcoin and the strength of the FOMC meeting could potentially result in lows on a 60-day timeframe.
On-chain analysis revealed the panic among the broader investor base as Bitcoin rebounded. The spent output profit ratio (SOPR), which measures the extent to which coins used in transactions move at a profit or loss, flipped negative on March 20 for only the fifth time this year. This indicates more loss-making transactions than profitable ones, with March 20 having the highest negative score since October 2023.
As reported by Cointelegraph, larger BTC entities continue to increase their exposure to Bitcoin while smaller investor classes sell.
Note: This article does not provide investment advice or recommendations. It is important for readers to conduct their own research and make informed decisions when it comes to investments and trading, as they involve risks.