BTC price needs to hold $70K next as Bitcoin weathers ECB rate cut

Avatar

Bitcoin (BTC) circled $71,000 at the June 6 Wall Street open as traders eyed a possible liquidity takedown.

BTC/USD 1-hour chart. Source: TradingView

BTC price anchors at $71,000 as rate cuts hit Europe

Data from Cointelegraph Markets Pro and TradingView showed BTC price action coiling below seminal resistance at $72,000.

This represented the final hurdle before an attack on all-time highs — something still on the cards for market participants as macroeconomic events boosted the crypto bull case.

These came from both the United States and Europe on the day. The European Central Bank, or ECB, enacted its first interest rate cut since 2019, while U.S. jobless claims came in above expectations.

“For Jobless Claims: Bad New = Good News,” trading resource Material Indicators wrote in part of advance analysis on X (formerly Twitter).

An accompanying chart showed areas of bid and ask liquidity on largest global exchange Binance.

BTC/USDT order book liquidity data for Binance. Source: Material Indicators/X

Continuing, popular trader Daan Crypto Trades considered that both speculative long and short traders might get shaken out before Bitcoin continued its uptrend.

“Price keeps moving sideways as the liquidity on both sides is building up,” he told X subscribers.

“Eyes on the bright yellow area’s for possible squeezes. Not ruling out price taking one into the other to take out both sides before choosing a direction.”

Binance BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X

Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlighted $70,000 as the next fundamental level to hold.

“The upwards momentum on Bitcoin continues to happen,” he summarized alongside an illustrative chart.

“$70K broke upwards, through which the important level is to hold $70K now for continuation to the all-time high.”

BTC/USD chart. Source: Michaël van de Poppe/X

U.S. macro data offers Bitcoin bulls further opportunities

As Cointelegraph reported, longer-term perspectives favor Bitcoin and altcoins, reaping the benefits of loosening fiscal policy worldwide.

Related: Bitcoin hash ribbons flash the first buy signal since $25K BTC price

The U.S. Federal Reserve may not have cut rates so far this year, but a clear precedent set by the ECB, combined with record global liquidity, has observers favoring upside.

“A lower than expected jobless claims report tonight and the CPI release next week might potentially be the trigger for a new all time high for BTC,” trading firm QCP Capital wrote in an update to Telegram channel subscribers on the day.

“There may also be added momentum to the rally as the market prices in rate cuts.”

QCP referenced upcoming U.S. macro data prints giving insights into inflation tendencies, among them the Consumer Price Index (CPI) print for May, due June 12.

That day will also see the Fed meet to confirm any rate changes.

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.