Key Points
- Bitcoin (BTC) experienced a slight drop from $66,000 after the Wall Street opening on May 16.
- Recent U.S. macroeconomic data, including jobless claims, has boosted the optimism of cryptocurrency bulls.
Bitcoin’s value experienced a slight dip, moving from $66,000 after the Wall Street market opened on May 16. This occurred while new macroeconomic data from the United States seemed to strengthen the case for cryptocurrency bulls.
Bitcoin Volatility and U.S. Jobless Claims
The price volatility of Bitcoin cooled off after a 7.5% gain the previous day. This followed the April release of the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI exceeded expectations, sparking a broad rally of risk assets.
On May 16, unemployment data further supported this trend, with jobless claims registering at 222,000 against the projected 220,000. This positive news seemed to bolster the case for Bitcoin.
Bitcoin’s Potential Resistance and Support
With this positive economic data, Bitcoin was poised to challenge significant resistance below its all-time highs. However, there were warnings that lower levels might need a retest to confirm a new phase of the broader Bitcoin bull run.
The nearest hurdle was the 50-Day Moving average, which was at $65.1k, just above the sell wall at $65k. Additionally, bid support remained relatively thin down to the $60k – $61k range. Furthermore, there had been no retest of support near the local low at $56.5k.
It was suggested that revisiting sub-$60,000 levels would be a “healthy way to validate the bottom and serve as a stronger foundation for the next leg up.” The technical resistance at $65k was being tested at the time of writing, and it remained to be seen if the bulls had enough momentum to push it above $69k.
