Bitcoin Eyes $60K: US BTC-spot ETF Flows and US Economic Indicators in Focus

Bitcoin Eyes a Return to $60,000

On Monday, September 2, BTC rallied by 3.08%, reversing a 2.62% loss from the previous session, closing at $59,170.

US Economic Indicators and the Fed Rate Path Support BTC Demand

Investor bets on a September Fed rate cut continue to support BTC at current levels. Lower borrowing costs typically increase demand for riskier assets.

Recent US economic indicators have eased fears of a US economic recession. A more dovish Fed rate path and a soft US economic landing could boost demand for riskier assets. BTC could target $70,000 and possibly its all-time high of $73,808. Recession fears had adversely impacted BTC demand.

This week, US service sector and labor market data will be crucial releases. Steady labor market conditions and sustained service sector activity may support a September Fed rate cut and reinforce expectations of a soft landing.

However, investors must also consider supply and demand trends.

US BTC-spot ETF Market Flows and US Government Supply

Last week, the US BTC-spot ETF market reported net outflows of $277.2 million, impacting BTC demand.

The weaker demand trends sent BTC to a Monday low of $57,205 before a move toward $60,000. With the US BTC-spot ETF market closed on Monday for the Labor Day holiday, investors likely shifted focus to the key US economic indicators due this week.

On Tuesday, September 3, BTC-spot ETF flow trends could be pivotal for the BTC price recovery. US manufacturing PMI data may give investors more insights into the US economy. Upbeat data could boost BTC-spot ETF and BTC demand, possibly supporting a BTC breakout from $60,000.

Nevertheless, oversupply risk remains a BTC headwind in the run-up to the US Presidential Election. The US government currently holds 203,239 BTC ($12.07 billion). US government transfers to crypto exchanges could negatively impact BTC demand, especially if the US BTC-spot ETF market outflows persist.

A shift toward oversupply could send BTC down toward $55,000. Conversely, a jump in US BTC-spot ETF market inflows could push BTC toward $65,000.

Investors should remain alert amid possible changes to supply-demand trends and shifting sentiment toward the US economy. Stay updated with our latest news and analysis to manage exposure to BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day and 200-day EMAs, sending bearish price signals.

A breakout from the 200-day EMA and the $60,365 resistance level could give the bulls a run at the 50-day EMA. Furthermore, a break above the 50-day EMA may bring the $64,000 resistance level into play.

US Manufacturing PMI data, sentiment toward the Fed rate path, and BTC-spot ETF market flow trends require consideration.

Conversely, a fall through $57,500 could give the bears a run at $55,000. A break below $55,000 may signal a drop to the $52,884 support level.

With a 46.85 14-day RSI reading, BTC may fall to $55,000 before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, confirming bearish price trends.

An ETH breakout from $2,500 could signal a move toward the $2,664 resistance level. Furthermore, a break above the $2,664 resistance level may give the bulls a run at $2,800.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH fall through the $2,403 support level could bring the $2,124 support level into play.

The 14-period Daily RSI reading, 43.03, indicates an ETH drop below the $2,403 support level before entering oversold territory.