Why Is The Crypto Market Growing Today? Breakout Momentum Builds Ahead of US Data
The crypto market is showing renewed strength after several days of volatility, with prices rising as traders look ahead to key US economic data. A combination of technological recovery, macroeconomic expectations, and changing market structure have helped digital assets regain momentum.
After recent selling pressure drove prices to key support levels, buyers retreated, starting a broad recovery led by Bitcoin and several top-performing altcoins. The move comes as investors focus more on upcoming US labor market data.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Market Rebound Signals Bearish Exhaustion
The total cryptocurrency market capitalization has added tens of billions of dollars in the past 24 hours, climbing back to the $2.3 billion mark after earlier losses. Analysts point to signs of bearish fatigue, with stabilizing price action suggesting that sellers may be losing control in the short term.
Bitcoin has reclaimed the $65,000 level and continues to trade within a multi-week consolidation range between $65,000 and $70,000. This rangebound structure reflects the balance between buyers and sellers, but recent iterations show improving appetite.
Ethereum also advanced significantly, holding near the $1,900 area, while major assets posted average gains of more than 3%. Meanwhile, strong markets influenced the rally, as widespread short-term foreclosures forced automatic buying that accelerated the rate hike.
Altcoins are bucking the broader trend, with tokens like UNUS SED LEO (LEO) posting double-digit gains amid massive inflows. Small-cap stocks recorded the sharpest percentage moves, although volatility remains high in that segment of the market.
US Economic Data and Spending Expectations Drive
The main reason for the increase in crypto today is the expectation regarding the upcoming US data of the first useless claims. Historically, weak labor market readings have strengthened expectations of a rate cut by the Federal Reserve, which tends to support risky assets such as cryptocurrencies by improving liquidity conditions.
Recent market behavior suggests traders should hold off ahead of the data release. Bitcoin has repeatedly reacted positively to reports of idle claims this month, strengthening the connection between macroeconomic indicators and crypto price action.
Similarly, improving sentiment in global markets, particularly technology stocks, added support. Crypto assets tend to move closer to risk assets, and gains in stocks have encouraged investors to re-enter digital markets following the recent dip.
Key Levels to Watch as Breakout Pressure Builds
Despite the recovery, the market remains in a technical crisis. In the broader crypto market, a decisive move above the capitalization level of $ 2.30 trillion can confirm a strong bullish impulse. Failure to hold current support, however, could also open up downside risks.
Bitcoin faces a similar test, with resistance near the $67,000–$70,000 range serving as the next major hurdle. A confirmed break above this area will reinforce the bullish outlook, while a drop below recent support levels could renew volatility.
Even if the Fear and Greed Index remains in the area of extreme fear, improving price stability and major incentives suggest that traders are preparing for a possible breakout, which may ultimately depend on the direction set by the upcoming US economic data.
Cover image from ChatGPT, BTCUSD chart on Tradingview
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