5 min readBitcoin is resuming its upward climb, breaking out of consolidation above 95k to 96k, its highest level since February 23.
The price has reclaimed 96 after a brief pullback yesterday following weaker-than-expected US GDP data. Yesterday’s figures showed that the US economy unexpectedly contracted 0.3% in Q1 at under eye space, missing expectations of 0.4% growth. The data suggests that the US economy was struggling even before Trump’s Liberation Day tariff announcements on April 2nd, raising the chances of the economy heading into a recession.
However, it wasn’t all bad news. Core PCE, the Fed’s preferred gauge for inflation, stalled in March at 0% vs 0.1% expected, and core PCE eased to 2.6% on an annual basis from 2.8%, suggesting the inflation was cooling towards the Fed’s 2% target ahead of Trump’s tariff announcement. Meanwhile, personal spending remained robust at 0.7%.
As a result, any immediate softness in the market was quickly brushed aside. US equities closed modestly higher after recovering from a sharp selloff immediately after the data drop. Today, the market mood is improving further on optimism that deals between the US and its partners would limit the damage from Trump’s trade war.
The US data drop continues this week. US ISM manufacturing PMI and jobless claims are today ahead of tomorrow’s non-farm payroll report. Weak data could fuel recession fears, particularly in light of this week’s GDP contraction.
Is Solana about to break out?
Solana is hovering above 150, rising for a second straight day after five days of losses. The price has reclaimed the key 150 psychological level while Solana’s stablecoin market capitalization reached above $13.07 billion after gaining 146% in Q1 of this year amid increasing network usage. The demand for efficient and inexpensive blockchain transactions plays into Solana’s strengths and is clearly reflected in user activity and inflows, indicating a bullish outlook.
Meanwhile, hopes of US regulators approving a Solana spot ETF in 2025 have risen sharply. According to Bloomberg Intelligence, the probability has reached 90%, which is higher than the probability for other spot crypto ETFs such as Ripple, Cardano, or Litecoin, which have odds around 70%.
6 asset managers have filed for us all ETFs and are waiting for developments from the SEC to list the ETFs. Meteor filings I generally considered a positive full Solana over the long term as it would make it easier for traditional investors to gain exposure to solve whilst also proving the legitimacy and liquidity.
Where next for SOL – Technical analysis
SOL’s recovery from 95 ran into resistance around 160 and has corrected lower. Buyers supported by the RSI above 50 will look to rise above 160 to bring 171, the 38.2% fib retracement from the 270 high and 95 low. Above here, the 200 SMA comes into focus at 181.
Failure to retake 160 could see SOL fall towards 142, the 23.6% fib level, and below her the 50 SMA at 131.70.
*Trading involves risk.
Author
Risk DisclaimerThe financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.
