U.S. Economic Data to Determine Short-Term Bitcoin Price Movement

• Gustavo Faria thinks that a local bottom has emerged on the Bitcoin price.
• Bitcoin underwent a correction of approximately 15% in the past three weeks.
• OI figures indicate a greater balance between buyers and sellers.

Bitcoin may have found a local price floor, according to Gustavo Faria, co-founder of analytics firm Nosy. Faria’s analysis cites key on-chain and market indicators suggesting a potential turning point for the leading cryptocurrency.

In a recent analysis , Gustavo Faria observed that Bitcoin has experienced a 15% correction over the past three weeks, falling from the $70,000 range to the $60,000 range.

Meanwhile, the financial expert observed a crucial development in the futures market, with open interest declining by about $3 billion in the past three weeks, primarily due to long liquidations. Faria identified a development that indicates a more balanced dynamic between buyers and sellers. He noticed that funding rates for perpetual contracts have dropped to near zero, resulting in a healthier and less overly optimistic price structure.

Faria’s analysis also covered Short-Term Holders (STHs), whose realized price he indicated was $62,600. He noted that BTC’s price has surpassed that level, causing STHs to experience slightly negative average profitability. The analyst recognized the $62,600 price level as a point that has historically acted as support for local corrections during uptrends.

Considering fundamental elements, Faria highlighted U.S. macroeconomic data as a significant factor influencing price action in recent months. According to him, the uncertainty about the future of American monetary policy affects investors’ risk appetite. However, he noted that the expected GDP, initial jobless claims data, and inflation data to be published this week could dictate market sentiment in the short term, despite the current structure suggesting a local bottom.

BTC was trading for $61,676 at the time of writing, having rebounded from support at $58,456 last Monday, according to data from TradingView.