Bitcoin Trading: Aiming for $62,000 Amidst Strength and Liquidity Challenges
Bitcoin is currently exhibiting notable strength, with recent data highlighting a 3% increase in price, resulting in a local high of $60,845 on Bitstamp. This increase coincided with recent macroeconomic data releases in the United States, including jobless claims and GDP figures, which largely met market expectations despite the jobless claims slightly falling short of forecasts.
The market’s sentiment regarding potential financial policy adjustments remains largely unchanged, as evidenced by the CME Group’s FedWatch Tool indicating continued market speculation regarding a 0.25% interest rate reduction by the Federal Reserve in September. The trading team QCP Capital, in a communication to their subscribers via Telegram, expressed optimism, anticipating that any declines in equities and cryptocurrencies would be transient. They indicated that the Federal Reserve is poised to instigate a rate-cutting cycle, which is expected to enhance liquidity and subsequently bolster risk assets. As a result, Bitcoin (BTC) is positioned to offer some respite to investors hopeful for an upward trajectory.
Monitoring resource CoinGlass notes that, although there have been notable attempts to halt BTC’s upward momentum, liquidity is experiencing strain on shorter timeframes, posing the question, “Will it hold?” Regarding the ongoing support retest on weekly frames, esteemed trader Rekt Capital conveyed a positive outlook, stating, “So far, so good. The retest continues to be successful as the week progresses, with Bitcoin also forming higher lows since early July.”
Looking ahead, fellow trader Jelle emphasizes the critical task of reclaiming the $62,000 level, which has seen diminishing liquidity recently. He cautioned, however, about the predatory nature of the current market environment, suggesting that it may be prudent for traders to remain cautious. Should Bitcoin surpass the $62,000 threshold, it could potentially catalyze a stronger upward movement. Additionally, he identified $65,000 as a significant level to monitor in the event of sustained strength in the market.
It is imperative to note that this article is not intended to serve as investment advice. Every trading decision involves inherent risks, and it is essential for individuals to conduct thorough research prior to engaging in any trading activity.
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