Bitcoin’s bullish momentum shows no signs of slowing, even as fresh US unemployment figures deliver a mixed message to the markets. Despite concerns over labor market uncertainty and bond market volatility, risk assets including Bitcoin and stocks continue to hold steady, suggesting investor confidence remains robust as BTC eyes a push toward $112,000.
Jobless Claims Stir No Fear Among Traders
On May 22, Bitcoin hovered just above $111,000 during early trading on Wall Street, showing surprising resilience despite contradictory data from the US labor market. Initial jobless claims came in below expectations at 227,000, signaling fewer layoffs than feared. Yet, continuing claims—the number of people still receiving benefits—exceeded forecasts by 13,000, painting a less optimistic picture of ongoing unemployment.
Typically, such mixed signals might cause hesitation among risk-averse investors, but instead, the market shrugged off the ambiguity. Trading data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin’s price swings remained minimal, closely mirroring the steadiness seen in major stock indices.
“Bitcoin is clearly in price discovery mode right now,” said Blacknox, the cofounders of the analytics service Material Indicators. On social media platform X, they pointed out that the market seems eager to “celebrate the good news and ignore the bad news.” Fellow co-founder Keith Alan described the jobless numbers as “additional fuel” driving Bitcoin’s upward momentum.
This bullish mood comes amid speculation that government intervention could soon stabilize the bond market after recent bouts of volatility rattled investors. Trading newsletter The Kobeissi Letter emphasized watching Bitcoin and gold closely, suggesting these traditional safe havens might react significantly to any upcoming policy moves.
Low Volatility, Low Profit-Taking Signal Bigger Moves Ahead
What’s catching the attention of many traders is Bitcoin’s unusually calm behavior at a historic price level. Unlike past rallies, where rapid price fluctuations and waves of profit-taking were common near all-time highs, Bitcoin has been quietly consolidating in a very narrow range—less than 1%—around $111,000.
Popular trader Daan Crypto Trades highlighted this rarity, telling his followers on X that it’s unprecedented for Bitcoin to “just casually trade” so tightly near its peak. He added that this compressed trading range could be a prelude to a “bigger move” once Bitcoin breaks out. According to him, traders are building up positions on both sides, setting the stage for a significant price swing.
Supporting this view, order book data from the analytics platform CoinGlass shows thickening bids and asks clustered tightly around the current price, indicating that traders are preparing for a decisive directional move.
Meanwhile, onchain analysis from Glassnode shows that long-term holders are maintaining a strong grip on their Bitcoin despite prices hitting record highs. Profit-taking volumes remain surprisingly muted; the realized profit from Bitcoin’s recent surge is less than half of what was seen during the previous $100K milestone in December 2024. This signals confidence among hodlers that Bitcoin’s rally still has legs.
What’s Next for Bitcoin?
With mixed economic signals failing to spook investors and both retail and institutional participants holding their ground, Bitcoin appears poised for further gains. The steady price action, coupled with low volatility and restrained profit-taking, points toward a potential breakout above the current consolidation zone.
If Bitcoin manages to breach resistance near $112,000, analysts expect the next leg of the rally could quickly unfold, pushing prices even higher. However, as always, markets remain sensitive to broader macroeconomic developments and policy announcements, especially those related to inflation and interest rates.
For now, Bitcoin’s calm amid uncertainty paints a picture of a market quietly gearing up for what could be a defining move in this bull cycle—one that many traders are watching with bated breath.
