Bitcoin surged above $58k after several days of failed attempts. Many anticipated a climb above this key level but were skeptical as the asset lost momentum.
The previous intraday session events added to the doubt, as macroeconomics showed mixed metrics. For example, the US Producer Price Index (PPI) slightly increased by 0.3% on a month-on-month basis, which is less than what market watchers expected. However, it was lower on a year-on-year basis.
Additionally, the number of unemployed grew higher than expected, coming in at 230,750 against the predicted 227,000.
Both announcements shook the US stock market, and the bitcoin had a fair share. It dropped from $58k to $55,500 before rebounding and closing at its opening price.
BTC resumed its uptrend today as traders looked beyond the previous news. Some analysts also maintained that the feds will still introduce the interest rate cut regardless of the latest readings from these key market indicators.
The apex coin has yet to gain stability above $58k as it continually trends below it. This pattern is due to selling congestion the coin is experiencing. Some traders continue shorting the asset around this critical level.
The bulls are seeing small victories but can’t sustain them. The derivatives market shows that sellers are actively funding their short positions, resulting in the ongoing inability to decisively flip the highlighted mark. Nonetheless, this sector of the crypto market is seeing notable activity, as open interest grew by over 3% in the last 24 hours.
Other on-chain indicators suggest that the drop below $58k may spur more downtrends.
Coinbase Premium is Negative
On-chain data shows that the Bitcoin is seeing a shift in investors’ behavior. They are generally becoming more bearish as the funding rates from two major regions are negative.
One such is the US. The apex coin is seeing less buying pressure from this country, as indicated by the Coinbase premium. The same trend is present in the Asian market as the Korea Premium is also negative.
Long-term holders are also moving their asset to exchanges in preparation for a possible selloff. Nonetheless, miners are moderately selling.
Exchange reserves are decreasing amidst the growing pressure on the apex coin. Additionally, netflow is negative.
While the bearish indicators are largely strong, the small bullish signals also mean that the asset will not see a massive price swing over the next few days until a change in market trends happens.
MACD Favors Bitcoin
The one-day chart remains positive, given the reading from on-chain data. The moving average continues printing buy signals as it completes its bullish convergence. The divergence is ongoing as the 12-day EMA edges above the 26-day EMA. MACD’s histogram is green for the first time in more than fourteen days.
The relative strength index also points to the notable buying pressure Bitcoin is experiencing as it moves closer to 48.
In the coming days, the largest cryptocurrency will look to gain stability above its pivot point at $58k. However, a close at the current price will give it an edge in subsequent bids above the mark. It is also worth noting that PP may serve as a critical support once a decisive flip happens.
Based on MACD, BTC may continue upwards. It will look to reclaim the 200-day exponential moving average at $59,300, which was tough resistance. The bulls will build on this level and retest the much-anticipated $60k mark.
Nonetheless, the apex coin is at risk of further decline. It may retrace as low as the 50% Fibonacci retracement at $56,700. Previous price movement also suggests a possible drop to $55k if the bulls failed to defend the 50% fib.
It is important to keep an eye on price action in the next 24 hours as it’ll determine if price will surge or drop.
