As a seasoned crypto investor, I’ve seen my fair share of market volatility, and the recent price action in Bitcoin (BTC) has been no exception. The flash crash to around $61,000 during May 14 was a stark reminder that even the most anticipated economic data releases can have an impact on our beloved digital asset.
As a crypto investor, I experienced a sudden price drop in Bitcoin (BTC) when the US inflation data was released on May 14. The value dipped down to around $61,000 before recovering.
U.S. PPI conforms ahead of Powell speech
As a crypto investor, I closely monitor the markets using tools like CryptoMoon Markets Pro and TradingView. The Bitcoin price action leading up to the Wall Street opening has been volatile and choppy, indicating potential uncertainty in the market.
The April edition of the Producer Price Index (PPI) showed a rise of 2.2%, as anticipated, marking the third consecutive month of price growth.
The price growth for final demand excluding food, energy, and trade services was 3.1% over the past 12 months ending in April – the most significant increase since a 3.4% rise during the same period in April 2023, according to data from the U.S. Bureau of Labor Statistics.
As a crypto investor, I observed that despite the PPI miss causing ripples in other financial markets, the crypto markets seemed unaffected. However, the overall outlook for risk assets, including cryptocurrencies, remained less than ideal due to this economic data point.
“For the first time since April 2022, PPI inflation has increased consecutively for three months, according to The Kobeissi Letter’s analysis on platform X.”
“Yet another sign the Fed can’t cut rates.”
Kobeissi discussed the ongoing debates regarding the potential actions of the Federal Reserve in relation to lowering interest rates.
At 10 AM Eastern time, Federal Reserve Chair Jerome Powell was scheduled to deliver a speech that would provide additional signals for financial markets to consider.
In their recent update to their Telegram channel, trading firm QCP Capital expressed the expectation that Powell’s speech tonight would be meticulously crafted, as is customary for him, leading to a subdued response from the markets.
As an analyst, I would interpret QCP’s statement as follows: The upcoming release of the May 15 Consumer Price Index (CPI) could potentially provide enough clarity for the market to make a decisive move in a particular direction.
BTC price “preparing for a new move higher”
Among Bitcoin traders, there was a sense of indecision as rangebound price moves continued.
According to CryptoMoon’s report, substantial amounts of liquidity were moving back into the market to pinpoint the spot price between buy and sell orders before the release of major economic data and Powell’s appearance.
As a researcher observing Jelle’s recent market analysis, I’ve identified that he’s pointed out three specific conditions which, in his view, have now been fulfilled for Bitcoin to experience an uptrend.
He mentioned checking the 100-day exponential moving average, which stood at $60,409, as a potential source of support. Furthermore, the MACD indicator indicated a bullish trend on the daily charts.
Jelle added that $65,000 was the line in the sand for the bullish scenario to play out.
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2024-05-14 17:17