Bitcoin has shown resilience despite minor fluctuations, maintaining its position above the $64,000 mark after reaching a high of $65,000 just a day ago. Despite a slight dip of 0.12% in the last 24 hours, bullish sentiment recovers the market, driven by rising buying volumes and favorable marketwide factors.
- Bitcoin trading at critical intra-day resistance level
- Buying momentum on the rise as ETF inflows rebound
- Weakening in the US economy paints a bullish picture for markets
US Economy Weakens – Possible Rate Cuts Coming
One significant factor contributing to Bitcoin’s potential upward trajectory today is the indication of a slowdown in the US economy, as reflected in the latest April 2024 labor data. While headline nonfarm payrolls rose by 175,000 in April, slightly below consensus expectations, the overall trend suggests a moderation in job gains.
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After a week of declines, Bitcoin, Ethereum and Dogecoin jumped in trading Friday morning.
Cryptocurrency values jumped the moment the U.S. Department of Labor released April 2024 employment data. Last month, the US added 175,000 jobs and the unemployment rate rose slightly to… pic.twitter.com/083s74IRmB
— krak.ai (@Krak_Ai) May 4, 2024
This development raises the possibility of the US Federal Reserve considering interest rate cuts, redirecting capital flows towards high-risk assets like cryptocurrencies. The prospect of monetary policy adjustments has likely bolstered Bitcoin’s resurgence above the $64,000 level, providing investors with renewed confidence in its long-term growth prospects.
Institutional Inflows Into Bitcoin On The Rise
Moreover, institutional inflows into Bitcoin have regained momentum after a brief slowdown at the end of April, further bolstering positive sentiment surrounding the cryptocurrency.
According to data from Farside, Bitcoin exchange-traded fund inflows have remained net positive in May, reaching $217 million as of yesterday. Grayscale’s Bitcoin Trust (GBTC) witnessed consecutive inflows, with a notable influx of $3.9 million, signaling renewed institutional interest in the asset class. Despite previous outflows totaling $17.4 billion, the recent uptick in institutional participation suggests a growing recognition of Bitcoin’s value proposition.
Fidelity Leading The Way
Fidelity (FBTC) emerged as a frontrunner among the institutional players, attracting the most significant single-day inflow of $99.2 million. This influx underscores Bitcoin’s growing institutional adoption and investment, highlighting its maturation as a viable asset class within traditional financial circles.
These positive indicators, including potential monetary policy shifts and renewed institutional interest, position Bitcoin as a compelling asset to monitor closely today. The cryptocurrency’s ability to hold ground amidst market fluctuations and garner sustained institutional inflows underscores its resilience and attractiveness as a store of value and hedge against economic uncertainties.
In the section below, we do a Bitcoin price prediction to determine how Bitcoin could trade today and in the coming days.
Bitcoin Trading At Key Resistance Level But Buying Volumes Rising
After a slight correction towards the end of the day yesterday, Bitcoin has established strong support at $63,187.13. Bitcoin has bounced off the $63,187.13 support in the last few hours but has hit strong resistance at $64,411.30. If bulls push Bitcoin through the $64,411 resistance, $65,186.68 would be a key target.
However, if bulls fail to push Bitcoin through the $64,411.30 resistance, two scenarios could play out in the day. The first is a possible consolidation between the $64,411.30 resistance and $63,187.13 support. The other scenario is where bears take control of the market. If this happens and bears push Bitcoin through the $63,187.13 support, then $60k would be a key target in the short term.
Why Bulls Could Push Bitcoin Through $64,411 Resistance Today
While Bitcoin could turn bearish or consolidate for the rest of the day, the odds are higher that Bitcoin could be headed higher today. Several factors likely trigger this today. One of them is that institutional inflows into Bitcoin are gaining momentum again. This means demand for Bitcoin will keep going up, which will likely push Bitcoin towards $65k or higher today.
#Bitcoin
We have our Monday range viz. 62.7k – 65.5k.
Looking at the current market price I anticipate it to sweep the lower range first and then the upper.
The upper range i.e. 65.5k has been a supply zone as well of #BTC .
What I expect is to take liquidity from 65.5k and then… pic.twitter.com/zUvOVaLQfG— Ananya Miglani (@ananyamiglani) May 7, 2024
There is also the fact that optimism is on the rise again, and markets could be headed higher, mainly due to the potential for rate cuts in the US. Investors will likely take more aggressive positions in risky assets such as stocks and cryptocurrencies. This is already evident in the bounce back in ETF inflows after a panic selloff towards the end of April. As this momentum builds up across the markets, Bitcoin could see more buying volumes, as has happened in the last 24 hours.
Read More: Bitcoin Price Prediction 2024 – 2040
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