Bitcoin down 3% in May; labor data may spark recovery
In brief
- Bitcoin declined roughly 3% in May despite US stock all-time highs
- BTC circled $73,500 as geopolitical tailwinds failed to lift price
- US employment data and ISM Manufacturing PMI may spark crypto volatility
Geopolitical relief didn't move the needle
Bitcoin faced ending May lower by around 3%, despite what should have been supportive headlines. US President Donald Trump said he was in no hurry to get an Iran deal finalized, undercutting the narrative that ceasefire progress would lift risk appetite across crypto and equities alike.
BTC/USD was down by just over 3% month-to-date per data from CoinGlass. The weekly chart, however, told a different story. Trader and analyst Rekt Capital noted that the BTC retest of $73k had been successful despite recent downside volatility, with a W-shaped bottom formation visible on the weekly chart that formed from late February onward.
Support bands and moving averages
Trader Daan Crypto Trades observed that BTC was trading at its bull market support band after a failed retest in recent weeks. The Weekly 200MA and EMA are still moving up and closing in on price — a setup that keeps the door open for further upside if momentum returns.
What's next: employment and PMI data
The May print of the Institute for Supply Management Manufacturing Purchasing Managers' Index offered BTC price action some relief in recent months. Next week's labor market data will be critical. Andre Dragosch, European head of research at crypto asset manager Bitwise, argued that if bitcoin continues to follow growth and risk appetite, it needs to reprice higher. That repricing hinges on whether employment figures and PMI data signal continued economic strength or early weakness.
