Bitcoin Eyes $73K Monthly Close as May Set for 3% Drop

Bitcoin traded near $73,500 on Sunday as May was on track to close about 3% lower. Traders highlighted the $73,000 monthly-close level and the upcoming US manufacturing Purchasing Managers’ Index (PMI) as near-term catalysts.

Price data showed BTC/USD trading quietly over the weekend, remaining under pressure in the low $70,000s and constrained by nearby trendlines. US stocks ended the week at record highs while Bitcoin did not rally in step with easing geopolitical tensions after a comment from former President Donald Trump that he was “in no hurry” to finalize an Iran deal.

Market participants pointed to next week’s US labor and manufacturing reports as potential sources of volatility for risk assets. The Institute for Supply Management’s manufacturing PMI for May is scheduled next week and has in prior months correlated with moves in risk assets.

Andre Dragosch, European head of research at Bitwise, wrote that if Bitcoin continues to follow growth and risk appetite it will need to “reprice higher from here.”

Technically, analysts are watching the $73,000 level ahead of the monthly close. Trader Rekt Capital wrote that the market’s retest of $73,000 had been “successful” and that a weekly close above that level would move price closer to confirming a double-bottom breakout that formed since late February.

Other technicians expect a larger range to remain in place. Trader Daan Crypto Trades noted the weekly 200-day moving average and the EMA are rising and converging on price and that trading between roughly $60,000 and $80,000 could persist for an extended period.

Exchange data aggregators showed Bitcoin down just over 3% for the month to date. Some short-term targets tied to gaps in CME Group’s Bitcoin futures have lost relevance after CME extended futures trading to 24 hours, removing many overnight gaps traders once tracked.

Market participants expect the US economic prints and the monthly candle close to influence short-term positioning, while high-timeframe moving averages and chart patterns remain reference points for longer-horizon investors.