Bitcoin has been strengthening its ground, sitting at about $95,000 on April 30 with traders expecting price might jump. After a recent breakout, Bitcoin has now calmed down into a routine of sideways trading. Despite these declines, most industry analysts are hopeful that this is only a short-term respite before another upward surge. Digital asset markets are preparing for potential volatility as important US economic data is set to be released, including a key inflation metric.
Market Sentiment and Predictions
Traders in #Bitcoin market are getting more bullish on the prospects for near-term price appreciation. A very positive macro sentiment is fueling optimism in the market. Traders watch out for a liquidity conflict around the $96,000 mark, where massive supply orders have amassed.
"Bitcoin nicely consolidating before the next leg upwards should initiate" - Michaël van de Poppe
"Simply moving sideways for a while to prepare for the next leg higher" - Jelle
Market participants are eagerly awaiting the monthly candle close. Bitcoin’s huge April run so far—up 15%—might be the digital currency’s best month since 2020.
Economic Data and Potential Impact
With the release of US GDP and Personal Consumption Expenditures (PCE) data these next two weeks, the market will be primed for significant volatility. These macroeconomic indicators are set to impact Bitcoin’s price heavily.
"All signs point to the first quarter of US GDP contraction since Q2 2022" - Kobeissi Letter
If released in line with the consensus view of a negative GDP result, this outcome would weigh heavily on risk assets, including Bitcoin.
Technical Analysis and Market Outlook
Analysts are taking Bitcoin’s recent price action and making comparisons to the S&P 500. On a larger level, they argue that there is a direct relationship between the two markets. Cold Blooded Shiller’s comment about the next 24 hours being crucial for Bitcoin and the S&P 500.
"It's going to be decision time for $BTC and $SPX I'd imagine within the next 24 hours" - Cold Blooded Shiller
"Either this loss of momentum results in the correction or we get clear of this and make a significant break into new highs. I still favour expansion upwards as the outcome" - Cold Blooded Shiller
Cryptocurrency research firm Rekt Capital underscored the importance of the monthly close for Bitcoin.
"Bitcoin is on the cusp of a Monthly Close in the $93300-$96500 Monthly Range" - Rekt Capital
"A Monthly Close like this would solidify Bitcoin's position at these highs, even if downside wicking below $93300 could still occur in May (similar to Dec 2024 or Jan 2025 wicks)" - Jelle
