BTC Maintains Critical Support Level Targeting $85K While S&P 500 Reaches Record Peak
BTC price action maintains potential for an $85,000 rally as American equities achieve new record highs in the face of concerning inflation figures.
Bitcoin (BTC) made contact with the $80,000 level during Thursday's opening session on Wall Street as American equities registered new record peaks and crude oil prices retested the $100 threshold.
Key points:
- Bitcoin climbed back to $80,000 as American equity markets reached unprecedented levels, shrugging off elevated inflation concerns.
- Market risk appetite is experiencing a dramatic surge, according to market analysis, notwithstanding apprehensions regarding monetary policy tightening by central banks.
- Cryptocurrency traders maintain consensus that Bitcoin could advance toward $85,000 in the near term.
Bitcoin recovers ground while American equities dismiss inflation concerns
Information sourced from TradingView demonstrated BTC/USD reclaiming a substantial portion of losses incurred during the prior trading session, which materialized following the release of inflation figures representing some of the most elevated readings witnessed in the United States over the past four years.
American equity markets rapidly dismissed the inflationary data points, notwithstanding the ramifications such figures could have on upcoming monetary policy restrictions.
The S&P 500 recorded its highest closing level in history, with momentum persisting into Thursday's trading session. The Dow Jones Industrial Average returned to the 50,000-point threshold for the first instance since the beginning of February.
Providing commentary on the market conditions, trading resource The Kobeissi Letter characterized investor risk appetite as experiencing explosive growth.
"Assets under management (AUM) in US leveraged ETFs are up to a record $177 billion. Since the March bottom, total leveraged ETF AUM has surged +$45 billion," the publication stated in its most recent analysis shared on X.
The Kobeissi Letter employed identical terminology when characterizing worldwide money-supply expansion — a favorable development for cryptocurrency and risk assets that stands in contrast to worries that central banking institutions were implementing a "hawkish stance."
"Meanwhile, US M2 money supply jumped +$1 trillion YoY, or +4.6%, to a record $22.7 trillion," the analysis elaborated.
"Money supply growth is accelerating."
With the US-Iran conflict continuing to develop, crude oil valuations appeared incapable of establishing new peaks, as WTI crude conducted another test of the $100 per barrel level from the upside.
Critical BTC price support level remains intact
A corresponding technical chart illustrated the 200-period simple (SMA) and exponential (EMA) moving averages maintaining an upward trajectory as they approached the current spot price level.
Addressing the identical subject matter, trading analyst CrypNuevo identified the possibility for BTC/USD to advance toward fresh multi-month peak levels at the 50-week EMA contingent upon the maintenance of current support structures.
"Bitcoin is at the most important level," the trader concurred on Wednesday.
"If it holds the range highs here, then it'll push towards the 1W50EMA at $84k-$85k. But a failure to hold this level could trigger a rotation back to the mid-range, potentially exposing range lows if momentum doesn't shift."
