Bitcoin Surges to $66,000 as U.S. Macro Data Boosts Risk Assets

Bitcoin Hovers Around $66,000 Amidst Risk Asset Surge

Bitcoin hovered around $66,000 on May 16th after positive U.S. macroeconomic data triggered a surge in risk assets. Data from Cointelegraph Markets Pro and TradingView tracked Bitcoin's price movement as bulls attempted to consolidate a 7.5% gain from the previous day.

CPI Report Fuels Optimism

This rise followed the release of the April Consumer Price Index (CPI) report, which slightly exceeded expectations and sparked hopes for looser financial conditions for crypto and other risk assets.

Cautionary Reactions

However, some analysts expressed caution, pointing to a rapid increase in open interest as a potential sign of unsustainable price movement. Popular trader Credible Crypto commented on the post-CPI environment, noting that it was "what we don't want to see on a rise" in Bitcoin's price.

Key Support and Resistance Levels

Credible Crypto highlighted the importance of the "62-63k region" as a key support level. He added that losing that level could lead to a drop back to $59-60k.

Another trader, Daan Crypto Trades, noted significant sell orders above the spot price, totaling over $400 million between $66K and $67K. He cautioned that if the price starts to eat into these orders, it could result in a quick fill of most of them.

Long-Term Bullish Sentiment

Despite these cautious views, some traders remained optimistic. Veteran trader Peter Brandt reiterated his long-term bullish stance on Bitcoin, stating that he remains confident in his preferred interpretation of the chart.

Michaël van de Poppe, founder and CEO of MNTrading, predicted a steady upward period for Bitcoin, potentially boosting altcoins. He noted that Bitcoin has held its range low strongly at $60.5K and that a breakout upwards seems inevitable.

Expectations of New All-Time Highs

QCP Capital, in a market update, anticipated Bitcoin returning to new all-time highs. They stated that bullish momentum could take the price back to the highs of $74k, citing factors such as significant sovereign and institutional adoption, easing inflation, and upcoming U.S. elections.