Bitcoin chips away at weekend upside as $80K hangs in the balance
Bitcoin price fell 2% in low-liquidity conditions as the US Labor Day holiday saw $80,000 once again slip from bulls’ grasp.
Bitcoin slid 2% during the low-liquidity conditions brought on by the US Labor Day holiday, with the $80,000 mark again out of reach for bulls. TradingView's data indicated BTC/USD dropped nearly 2% on Monday, following its first weekly close above $80,000 since early May. The price action occurred as the first US markets closed for the holiday, leading to thinner order books and the potential for sudden moves targeting liquidity on either side of the current price.
CoinGlass' data revealed that liquidations were evenly split between long and short positions over the past 24 hours, with a cross-crypto total of $178 million. Bitcoin liquidity thickened throughout Monday, with support levels emerging at $80,500 and $78,800.
Trading firm QCP Capital pointed to decreasing overall volatility, stating that traders now needed external catalysts. The upcoming US inflation data on Thursday and Friday is expected to influence market expectations for Federal Reserve interest-rate hikes. QCP noted that the market is currently positioned for a directional break once the inflation data is released, and that traders are waiting for clarity rather than pricing in strong directional views.
Despite being in a narrow range since August 21, BTC/USD still showed bullish signals and maintained the majority of its 25% gains from earlier last month. Analyst Ryan Lee from Bitget commented that Bitcoin had digested last week's unexpected jump in nonfarm payrolls numbers. He explained that while stronger employment might usually exert upward pressure on yields and the dollar, creating a more challenging environment for risk assets, Bitcoin's resilience indicated that investors were not treating a potential Fed hike as the sole factor driving the cryptocurrency at current levels.
Additionally, US spot Bitcoin exchange-traded funds (ETFs) have come under the spotlight following Thursday's $730 million net inflows, which marked the cohort's highest single-day amount since January.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
