Bitcoin traders expect price surge ahead of $96K liquidity test

Bitcoin's (CRYPTO:BTC) price has remained steady at around $95,000 on April 30, with market participants awaiting key US macroeconomic data that could influence volatility.

The upcoming release of Q1 GDP and the March Personal Consumption Expenditures (PCE) index is expected to trigger market fluctuations, especially in risk assets like Bitcoin.

The PCE index is the Federal Reserve’s preferred measure of inflation, and the market consensus indicates a possible negative GDP result for Q1, which would signal a contraction.

Despite the potential for volatility, many Bitcoin traders remain confident in the cryptocurrency’s ability to break out upwards.

“Either this loss of momentum results in the correction or we get clear of this and make a significant break into new highs. I still favour expansion upwards as the outcome,” popular trader Cold Blooded Shiller commented.

“Bitcoin nicely consolidating before the next leg upwards should initiate,” crypto trader Michaël van de Poppe agreed.

Traders are also watching for a potential liquidity grab around the $96,000 price level. Jelle, another trader, pointed to the clustering of asks near this price, suggesting a possible upside move after Bitcoin consolidates further.

April has been a strong month for Bitcoin, with the cryptocurrency up 15% month-to-date, marking its best April performance since 2020. 

Rekt Capital commented on the possibility of Bitcoin closing the month within the $93,300-$96,500 range.

“A Monthly Close like this would solidify Bitcoin's position at these highs, even if downside wicking below $93,300 could still occur in May,” he noted.

Bitcoin’s performance in April has fueled optimism as traders anticipate further price action in the coming weeks.

At the time of reporting, the Bitcoin price was $95,012.21.