BTC Struggles to Break 72k USD for 24 hours…

Upcoming consumer price index and labor market data releases in the next few days could be key for what’s next for bitcoin’s price.

AccessTimeIconJun 6, 2024 at 1:43 p.m. PDT
  • 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.

Bitcoin liquidation heatmap (CoinGlass)
Bitcoin liquidation heatmap (CoinGlass)

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.

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