Crypto Alarm Clock: Bitcoin Price Hits $94,000 – What Now?

The Bitcoin price suddenly shot through $94,000 last night. During that revival, $200 million worth of short positions were liquidated.

This means that people who gambled on a fall in the price with borrowed money were forced to buy back Bitcoin, giving the rise extra strength. Since Friday, Bitcoin has risen by almost $6,000.

Bitcoin in important price zone

Ultimately, we saw Bitcoin rise to $94,750 yesterday. Bitcoin thus reached a level where it has already been rejected several times since the bottom of $80,000 on November 21.

It will be interesting to see whether Bitcoin can now find the strength to break out of this. To achieve this, the price must at least rise above $95,000, and then stay there by turning that level into a support point.

Furthermore, regaining the prices of 96,200 and 101,200 seems important for Bitcoin. These price levels correspond to price averages that played an important role for Bitcoin throughout the entire bull market. If that were to happen, the path to new all-time highs would in principle be open again.

Mixed signals from the US economy

In addition to all the news from Venezuela, the American economy was also back in the picture on Wall Street yesterday. It was time for the ISM Manufacturing PMI, a health indicator for manufacturing in the United States.

It came in at 47.9 points, which means it is officially in contraction, which must mean that the industry is shrinking. Still, a score of 42.3 points or higher has historically been associated with a growing and solid economy. From that perspective, this score is not alarming, and therefore not a direct threat to the US economy or Bitcoin.

The main problem is that demand is still lacking. Under the heading “new orders” we saw a score of 47.7 points. This means that this category is contracting for the fourth month in a row. We have not seen a sustainable increase in new orders since mid-2022.

Furthermore, the backlog of orders was 45.8, meaning it has been in contraction for 39 months in a row (!). This no longer concerns a “short cycle”, but rather a long disappearance of future work.

The report is full of contradictions, and American industry is no longer quite what it once was. Fortunately, this is not extremely important for economic growth, because the economy in the United States largely runs on the service sector.