Bitcoin shrugs off US jobs data as BTC price gives up $66K support

Bitcoin bulls are finding it increasingly difficult to preserve earlier gains, which came thanks to U.S. inflation numbers.

Bitcoin (BTC) slipped from $66,000 after the May 16 Wall Street open while fresh United States macro data boosted bulls’ cause.

U.S. jobless claims further bullish crypto 

Data from Cointelegraph Markets Pro and TradingView showed BTC price volatility cooling after the previous day spawned 7.5% gains.

These followed the April print of the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI), the former beating expectations to fuel a broad risk asset rally.

May 16 saw unemployment data support that trend, with jobless claims coming in at 222,000 versus the anticipated 220,000.

“As difficult as the PPI report may have been to interpret, today’s Core Inflation metrics seem to be very easy. Good News = Good News,” Keith Alan, co-founder of trading resource Material Indicators, wrote in part of a response on X (formerly Twitter).

With that, BTC/USD was primed to attack seminal resistance below all-time highs, analysts suggested.

“We’re entering a liquidation cluster zone that goes from $66k to $70k,” popular trader CrypNuevo wrote in part of his latest X content.

“The level with the highest liquidations inside this area is $69k (main liquidity level). We might consolidate or retrace first, but this cluster is the target.”

An accompanying chart showed liquidity levels around spot price from monitoring resource CoinGlass.

Analyst eyes key BTC price support to hold

Looking to the downside, Alan warned that lower levels may need a retest to confirm a new phase of the broader Bitcoin bull run.

Related: Bitcoin analysis sees $74K next as BTC price tries to hold 7.5% gains

“The nearest obstacle is the 50-Day Moving average which currently sits at $65.1k just above the sell wall at $65k. The second issue is the fact that bid support is still relatively thin down to the $60k – $61k range,” he continued.

“Lastly, we’ve not seen any retest of support anywhere near the local low at $56.5k, nor have we seen a retest of either of the previous two consolidation ranges.”

Alan added that revisiting sub-$60,000 levels would constitute a “healthy way to validate the bottom and serve as a stronger foundation for the next leg up.”

“Downside targets are unchanged for me. I’d love to see a test of support at the 21-Week Moving Average,” he concluded.

“To the upside, technical resistance at $65k, is literally getting hit right now at the time of writing. Watching to see if bulls have enough momentum to carry this above $69k.”

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.