Bitcoin Cryptocurrency markets fell below $70,000 for the first time in two months, a week ahead of key US economic data that could determine the direction of the next move for risk assets.
The largest cryptocurrency has lost more than 4.45% in the last 24 hours, and was recently trading near $69,400. Ether fell 0.6% to $1,970. The broader Coin Desk 20 (CD20) index retreated 3.2 percent over the same period.
Crypto’s near-term setup doesn’t seem to support it. The spot bitcoin ETF saw an 11th day of net outflows, and Bitcoin’s largest corporate holder Strategy (MSTR) said it sold 32 BTC for $2.5 million.
Although the sale is small compared to strategic holdings, it is considered symbolically important and bitcoin fell after the filing was made public. Still, not everyone sees sales as the real driver.
“The silo/strategy of selling some raspberries is not causing bitcoin to crash,” said Pierre Rochard, a bitcoin researcher and board member of Bitcoin Holder Strive (ASST). Written on X. “The reality is that there is a massive parabolic spike in AI-related equities that is draining all excess liquidity, multiples of Bitcoin’s market cap.”
Rochard added that a healthy labor market and high energy prices mean that “the sentiment for deleveraging is nowhere to be found,” even as bitcoin’s fundamentals “have never been better.”
That leaves economic data as the next big catalyst. A strong US jobs print on Friday could dampen hopes of a rate cut and put further pressure on crypto, while soft data could help bitcoin reclaim above $70,000. Be careful!
Read more: For an analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of this week’s events, see CoinDesk’s “Crypto Week Ahead.”
What’s trending?
Today’s tip
On the weekly chart, Bitcoin price is approaching a key confluence support – the 0.618 Fibonnaci level near $69,000 and the 2022 low-to-long-term ascending trend line.
The RSI remains near 39 with no bullish divergence yet, hence the confirmation of the downside from the momentum indicator. Currently, this is a purely structural level test.