BTC Struggles to Break 72k USD for 24 hours…

June 7, 2024 Admin 0 Comments

Bitcoin spot selling on exchanges weighed on prices with a built up of short derivatives positions around the $72,000 level, one observer noted.
Soft U.S. economic data, rate cuts could foreshadow dovish a Fed meeting next week.

Bitcoin (BTC) is increasingly compressed in a narrow range as the latest effort to rally past $72,000 stalled Thursday.

BTC rallied to $71,700 earlier during the day following the European Central Bank (ECB)’s rate cut, but quickly tumbled nearly dipping below $70,000 before bouncing to $70,600 at press time, down about 1% over the past 24 hours, CoinDesk’s Bitcoin index data shows.

Well-followed market analyst Skew noted concerted spot selling activity on crypto exchanges Binance and Coinbase, and a simultaneous built-up of short perpetual futures positions on derivatives marketplaces, weighing on prices.

CoinGlass data shows a significant leverage built-up around the $70,000 and $72,000 price area that could be liquidated in case of a breakout from the narrow trading range in either direction.

The broader crypto market also experienced a pullback, with the CoinDesk 20 Index down 1% over the past 24 hours. Decentralized exchange Uniswap’s token (UNI), oracle network Chainlink’s LINK and layer-1 blockchain Near’s NEAR declined 3%-5% in the same period.

Cosmos-based blockchain Injective’s native token (INJ) defied the broader trend, gaining 5% following the project’s tokenomics update that aims to make the asset more deflationary, reducing supply via token burns.

Despite bitcoin’s struggle to get past the $72,000 level, analysts call for an imminent break upwards to new record highs as macro conditions are turning in favor of risk assets.