BTC Price Needs to Hold $70K Next as Bitcoin Weathers ECB Rate Cut

As of now, BTC Price is at local duration and is at a very crucial juncture as it has been moving side by side with $71,000, where it has a main barrier of $72,000. The latest actions made by the European Central Bank (ECB) which reduced interest rates for the first time in four years, interrupted the up-trending of bitcoin’s price. For now, let’s look into the culminating elements that will help us understand what has led to the creation of Bitcoin and the key levels that may be expected to allow it to reach a new all-time high.

The BTC price stays below $71,000.

Bitcoin is trading on the back of an important support price level around $66000 that has previously acted as both support and resistance and, at the same it has been hovering just slightly below the $72000 level which is a psychologically important level and a focus of many traders as a last line of defense before the all-high attack. Understanding of experts supported by the Cointelegraph Markets Pro and TradingView demonstrates how crucial this resistance is now and why it is so important that the price is currently hovering around $ 71,000.

Read  more:-Bitcoin Option Price Of $10,000 Launched By STMX

ECB’s First Rate Cut in Four Years

The European Central Bank recently announced the first interest rate cut since the time before 2019. This policy change that has been adopted seeks to boost expenditure during various economic adversities. Bitcoin, opens a new pool of liquidity that might diversify the crypto market and look for better stores of value with low interest rates.

A Power of U. S. Economic Data and Bitcoin

At the same time, the United States has reported above-average jobless claims data and still has yet to reach an agreement with the European Union regarding trade tariffs. Unlike other economic indicators, this one is connected to the price of Bitcoin in various ways. For instance, a trading resource, Material Indicators, holds the view that, while bad news is usually associated with jobless claims, Bitcoin emerges as the ultimate winner. If there are more unemployment claims, that is a red flag that the economy is strained and investors may run to hedge assets such as bitcoins.

Market Sentiment and Liquidity

Another one of the key factors that affect the demand for bitcoins is market sentiment. Examining bid and ask liquidity on Binance indicates the posture of the traders. The situation on both sides is effectively similar in the buildup of liquidity where potential squeezes breed. According to the popular trader, Daan Crypto Trades, the next push for a longer BTC price uptrend might result in short-term squeezes for long and short term before a continuous push higher, which is why traders should keep an eye on the levels of liquidity.

Read more :- Bitcoin Price Analysis.

Key Levels to Watch

This price is becoming a vital support level of $70,000 which bulls require to defend. According to Michaël van de Poppe, the CEO of MNTrading, sustaining this level is necessary for Bitcoin to hold more ground and continue higher in the coming days. Establishing a pole of $70,000 and averaging consolidation above it positions Bitcoin for an attempt to break past $72,000 and set sights on a new all-time high.

Speculative Trading Dynamics

Speculative trading behaviour, which appears to be significant given the volatility of Bitcoin prices, is another level of influence. It can be highly speculative, as many traders opt for placing long and short bets for a specific commodity. This gives the impression that movements in prices can be inflated since traders can be forced out of their trades. As noted by Daan Crypto Trades, the increased volumes help both sides in the market and they cause particular price fluctuations towards defining the market direction.

Michaël van de Poppe’s Analysis

Using the comment of Michaël van de Poppe, there is still a sustained run in the prices of Bitcoin. He also notes that the probability of getting a raise beyond $70k is a positive signal that one will indeed achieve the milestone. His analysis also tries to convey the significance of this level in deciding the subsequent phase of Bitcoin’s price trend. The surge and the interaction with this support level should be observed by traders and investors.

Long-Term Bullish Perspectives

But even if the BTC price is trimmed in the short term, the long-term direction of Bitcoin remains up. The purchase by the ECB to cut down the rate and other fiscal policies also support the environment for Bitcoin. Loosely, previous economic cycles that led to high liquidity and low interest rates have tended to be positive for Bitcoin and other cryptocurrencies and are conducive to their development as alternative forms of investment.

Global Liquidity and Bitcoin

Fiscal policy factors such as the expansion of the global liquidity pool through the global quantitative easing program are the driving force behind Bitcoin prices. As more money is pumped into the economy by, for example, central banks, the investors look for securities that can act as inflation hedges. Bitcoin with its limited supply to increase supply in circulation becomes the preferable choice over others, and due to increasing the number of buyers, it sees its price appreciating.

Upcoming U.S. Macro Data

In the near term, a number of reports on the state of the macroeconomy in the United States are expected to affect the value of Bitcoin, it was revealed. Moreover, the focus will turn to the Consumer Price Index (CPI) which is expected to show the direction of inflation rates. Thus, if the actual figure turns out to be below market forecasts, it will defer to the bulls’ narrative, prolonging the theme of looming economic problems and sustainable loose measures.

Consumer Price Index (CPI) Implications

It seems logical that this hyperinflation, and the results that come with it, such as high levels of consumer price index (CPI), are often the cause of so many failures and problems associated with hyperinflation.

One of the essential inflation figures that Bitcoin traders rely on is the CPI print, which is expected on June 12. This is an index that compares the increase in the price of goods and services in a given economy and for that reason, it is an indicator of inflation. 

Investors with higher CPI might be worried about inflation effects, therefore, resorting to investing in Bitcoin. In contrast, a lower CPI may offset some of these fears, but would also take some pressure off of upward moves in the short-term.

Federal Reserve’s Role

There is also a position on interest rates’ direction by the Federal Reserve as another component to consider for investment. Despite the fact that the Fed has failed to cut this year it is fully expected that similar to what was done by the ECB other such cuts may well be possible given the current global economy. In the present scenario if the Fed comes out with a new message of higher accommodation then further support could arrive in Bitcoin’s camp as an asset.

Conclusion

This is the story of how Bitcoin has navigated the world of investing, with all of its prospects and obstacles, on its way to potentially breaking all-time highs. This is because new factors such as the recent ECB rate cut and the latest economic figures from the United States of America are now an input. 

BTC price needs to stand at $70,000 and maintain its upward trajectory in the market and traders should look at incoming macroeconomic reports. As expected, it is pertinent that the crypto market is very unpredictable, but solid planning is necessary.