Bitcoin’s price remained weak as it headed towards $27,000 after the May 11 Wall Street open, with bulls failing to show strength. The digital currency was at risk of further loss of support as it struggled to recover from local lows seen the day prior. Despite the bullish cues offered by new United States macro data, the pair remained weak.
Market Participants Prepare for Downside Targets
Market participants continued to prepare downside targets, with many focusing on the area around $25,000. Popular trader Daan Crypto Trades summarised, “We’re still trading at the range lows and until broken I think shorts aren’t great R:R. Bulls need to show strength by retaking the daily open for me to consider a possible reversal scenario.” Fellow trader Crypto Tony advised waiting until Bitcoin loses $27,000 before shorting the support zone loss.
Trader and Analyst Moustache Provides Optimistic Analysis
Trader and analyst Moustache provided an optimistic analysis, focusing on longer-term price trends. Specifically, two moving averages, the 20-week and 200-week, were about to stage a form of “golden cross,” wiping out their interplay from September 2022, months before Bitcoin’s latest cycle low. Moustache explained, “And now? The SMA 20/200 is about to cross bullishly. Price above blue = Always bullish (see ‘15,‘19).”
Cautious Celebration for Crypto Investors
Encouraging U.S. Producer Price Index (PPI) and unemployment data gave crypto investors cause for cautious celebration. Jobless claims were up on the day, while PPI conformed to expectations of inflation continuing to trail off. Together with similar signals from the Consumer Price Index (CPI) the day prior, the odds were on for interest rates to stop rising in June. Financial commentator Tedtalksmacro reacted, “US unemployment claims higher to +264k and PPI in-line with consensus on the headline + core prints. More data conducive to a pause in June.”