Outside Source
Bitcoin continues to flirt with a breakout toward all-time highs as macro tailwinds strengthen.
Market Update
Bitcoin (BTC) sought to preserve $105,000 at the Jan. 30 Wall Street open as US Q4 GDP delivered a “big miss.”
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin gains as focus switches to US PCE print
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength persevering, with BTC/USD up 2% on the day.
The latest US macro data fell considerably short of expectations, with Q4 GDP coming in at 2.3% versus the forecast 2.5%.
“Immediate response: Yields down, Dollar down, $ETH vs. $BTC up strongly, Altcoins surging,” Crypto trader, analyst and entrepreneur Michaël van de Poppe wrote in part of a reaction on X, calling the result a “big miss.”
“The pendulum starts to change and I think this is going to continue coming period.”
US dollar index (DXY) 1-hour chart. Source: Cointelegraph/TradingView
The S&P 500 and Nasdaq Composite Index both opened up around 0.5%, while the US dollar index (DXY) saw a snap dip to 107.5.
“As predicted GDP is going lower again,” popular crypto commentator Seth continued in his own X post.
“This is why I have been advocating for lower rates. We need more stimulus.”
Fed target rate probabilities. Source: CME Group
The result placed additional scrutiny on the Federal Reserve, which the day prior had opted not to cut interest rates despite the insistence of President Donald Trump. The latest estimates from CME Group’s FedWatch Tool put the odds of a cut occurring at the Fed’s next dedicated meeting in March at just 18%.
The day’s other macro print in the form of initial and continuing jobless claims also came in below forecasts, potentially bolstering the Fed’s ability to hold rates higher for longer.
“Focus will be on consumption growth & prices paid again,” popular trader Skew concluded, referencing the Personal Consumption Expenditures (PCE) Index numbers due Jan. 31.
BTC price eyes breakout beyond key level
On Bitcoin itself, Skew saw reason for modest optimism after weeks of sideways BTC price action.
Related: Bitcoin far from ‘extreme’ FOMO at above $100K BTC price — Research
“Price around $105K now, meaning market has recovered losses from early week fallout,” he told X followers while analyzing 4-hour timeframes.
“Now it’s entirely about trading with the established trend from here.”
BTC/USDT 4-hour chart. Source: Skew/X
He added that were BTC/USD to break out, altcoins could still reap the benefits.
“Strong BTC will likely revive the market again especially given the ripe opportunities in crushed alts with good narratives,” he wrote.
Fellow trader Anbessa meanwhile described the latest uptick as “textbook” price performance.
“Next key level to reclaim $106,5k. Strong signal if consolidation above,” he argued about the 4-hour chart.
BTC/USD 4-hour chart. Source: Anbessa/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
