Key Points
- Bitcoin (BTC) manages to maintain support above $70,000 as U.S. macro data improves market mood.
- The Producer Price Index (PPI) came in below expectations, boosting risk-asset sentiment.
Bitcoin (BTC) held firm to its $70,000 support level during the Wall Street opening on April 11 as positive macroeconomic data from the U.S. lifted the market mood.
The BTC price action was volatile, but the bulls managed to retain the gains made the previous day.
Impact of U.S. PPI on Bitcoin
The March print of the Producer Price Index (PPI) came in lower than expected at 0.2% month-on-month, improving the sentiment towards risk-assets.
This offset the previous overshoot of the Consumer Price Index (CPI), offering a mixed view of inflationary pressures. However, the market anticipates a longer wait for the Federal Reserve to reduce interest rates.
Keith Allen, co-founder of trading resource Material Indicators, pointed out that the market is factoring in ‘high for longer’ inflation. He also highlighted the upcoming block subsidy halving and current BTC price structures as significant factors.
Bitcoin’s Critical Level
Allen explained that the bullish case for BTC is building around a series of higher lows, while the bearish case is centered around the fact that bulls haven’t been able to validate and flip the trend line, $69k, or the 21-Day Moving Average. He pinpointed $69,000 as the “most critical” level to watch.
A chart of BTC/USDT order book liquidity on the largest global exchange Binance showed sellers waiting near $73,000, and strengthening bid support near $67,000.
Market observers drew optimism from the landscape on exchanges, with funding rates remaining low despite the recent price increase. Philip Swift, co-founder of statistics platform Look Into Bitcoin, concluded that the Bitcoin funding rates look healthy for the first time since BTC climbed above $70,000.
Popular trader Daan Crypto Trades suggested that traders are now hesitant to long BTC due to successive rejections near all-time highs. He pointed out that $71.5K is an important level to break and hold above, and if that happens, reaching all-time highs should be a matter of time.
