Bitcoin chips away at weekend upside as $80K hangs in the balance

<a href="https://xpertsstudio.com/when-garlinghouse-said-xrp-is-1000-times-faster-than-bitcoin/” title=”When Garlinghouse Said XRP Is 1,000 Times Faster Than Bitcoin”>Bitcoin ($BTC) drifted lower on Monday as a low-liquidity environment erased the weekend’s gains above $80,000.

• Bitcoin dips 2% below $80,000 after its highest weekly close since the start of May.
• Traders are in wait-and-see mode ahead of the week’s key volatility catalyst in the form of US inflation data.
• Analysis praises Bitcoin’s “resilience” as a narrow range holds since mid-August.

Bitcoin needs US inflation catalyst: Analysis

Data from TradingView showed $BTC/USD down nearly 2% on the day at the time of writing. This price action comes after its first weekly close above $80,000 since early May.

With US markets closed for the Labor Day holiday, thinner order books increased the chances of sudden moves to target liquidity both above and below the spot price. Data from CoinGlass showed liquidations evenly split between long and short positions over the past 24 hours, with the cross-crypto total at $178 million.

Crypto liquidation history (screenshot)

Liquidity thickened over the course of Monday, with concentrations at $80,500 and $78,800 providing nearby short-term targets.

In comments, trading company QCP Capital flagged declining overall volatility, suggesting that traders required external catalysts. These are due in the form of US inflation data on Thursday and Friday, which is likely to impact market expectations for interest-rate hikes by the Federal Reserve.

“Near-term volatility compression, despite approaching catalysts, reflects a market waiting for clarity rather than pricing in strong directional views,” QCP wrote in its latest analysis. It added that the “market is positioned for a directional break once the inflation data arrives.”

$BTC price “resilience” draws attention

Despite moving in a confined range since Aug. 21, $BTC/USD offered bullish signals and held the majority of its 25% gains from earlier last month.

In comments sent to Cointelegraph, Ryan Lee, chief analyst at Bitget, noted that Bitcoin had digested last week’s US macro volatility trigger, which was a surprise uptick in nonfarm payrolls numbers.

“Bitcoin’s resilience is notable because stronger employment would normally put upward pressure on yields and the dollar, creating a tougher environment for risk assets,” he said.

“The market’s ability to absorb that repricing suggests investors are not treating a potential Fed hike as the only factor driving Bitcoin at current levels.”

As Cointelegraph reported, the US spot Bitcoin exchange-traded funds (ETFs) also remain on the radar following Thursday’s $730 million net inflows. This was the cohort’s highest single-day tally since January.

Source: cryptonews.net