BTC Price Risks $27,000 Loss As Bitcoin Trendlines Brew ‘Bullish Cross’
Bitcoin (BTC) edged toward $27,000 after Wall Street opened on May 11 as bulls failed to show strength.
BTC price “rolls over” after brief rally
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it risked further loss of support.
After a modest recovery from local lows seen the previous day, the pair remained weak, although new US macro data provided bullish signals.
“Dump resumed, but then the price quickly rolled over again,” popular trader Daan Crypto Trades in summary.
“We are still trading at the lows and until they are broken I think shorts are not good R:R. Bulls need to show strength by taking the daily open again for me to consider a possible reversal scenario.”
As Cointelegraph previously reported, market participants continued to set downside targets, with many focusing on the $25,000 area.
“I’m staying short personally, but for anyone who isn’t short yet, I’d wait until we lose $27,000, then look to short this support zone loss,” Crypto trader Tony continued.
“For now, we’re holding it, so there’s no reason to short just yet.”
Among the bullish voices on the day was trader and analyst Mustache, who in optimistic analysis focused on long-term price trends.
Specifically, two moving averages, the 20-week and the 200-week, were staging a sort of “golden cross” – wiping out their interplay from September 2022, months before Bitcoin’s last cycle low.
“In September 2022, there was a bearish crossing of the SMA 20/200 line for the first time recorded. This gave many people the opportunity to buy $BTC at ~15k,” explained Mustache.
“And now? SMA 20/200 is about to cross bullishly. Price above blue = Always bullish (see ’15, ’19).”
US data joins CPI, delivering another blow to inflation
On the macro side, meanwhile, encouraging US producer price index (PPI) and unemployment data gave crypto investors cause for cautious celebration.
Related: Bitcoin trader sees $63K BTC price for new Bollinger Bands ‘breakout’
Jobless claims rose during the day, while PPI matched expectations that inflation will continue to ease.
Along with similar signals from the consumer price index (CPI) the day before, the odds were that interest rates stopped rising in June, financial commentator Tedtalksmacro reacted.
“US unemployment claims higher to +264k and PPI in line with consensus on headline + core pressures. More data contributes to a pause in June,” he tweeted.
ONE further posts claimed that “Today’s US PPI numbers confirm that the path of least resistance for CPI inflation is down.”
The latest readings from CME Group’s FedWatch Tool showed market consensus for a June rate hike pause at over 96%.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
