- June 13, 2024
- Posted by: [email protected]
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Bitcoin (BTC) is currently trading around $67,850, experiencing an intraday low of $66,123. The recent surge in the US dollar, underpinned by strong economic data, has played a significant role in the bearish trend affecting BTC prices. Investors have adjusted their expectations concerning an imminent Federal Reserve interest rate cut in September. This adjustment stems from a robust US labor market and persistent inflation. The strong economic indicators have pushed the US dollar to near a one-month high, exerting substantial downward pressure on Bitcoin.
Market participants are now anticipating a modest 25 basis point rate cut later in the year, possibly in November or December rather than in September. This cautious approach is further supported by the forecast for the US Consumer Price Index (CPI) for May. The headline CPI is expected to ease slightly to 0.1% from the previous 0.3%, while the annual rate is predicted to remain at 3.4%, well above the Federal Reserve’s 2% target. Meanwhile, the Core CPI is forecasted to stay at 0.3% for the month and decrease slightly to an annual rate of 3.5% from April’s 3.6%, indicating ongoing inflationary pressures.
Traders are exercising caution, holding back strong bids as they await the latest US consumer inflation figures and the critical outcomes of the Federal Open Market Committee (FOMC) meeting scheduled for later this Wednesday. The FOMC meeting is expected to provide updated economic projections, including the influential “dot plot,” which outlines the Federal Reserve’s interest rate outlook. These projections could significantly impact Bitcoin’s price, as they will offer insights into the Fed’s future monetary policy stance.
Economist Peter Schiff has voiced concerns about Bitcoin’s stability, particularly with the potential influx of institutional ETF buyers. He argues that relying on ETF purchases to drive Bitcoin prices could increase market volatility, as ETF buyers may eventually sell off their holdings. This contrasts with spot buyers, who typically hold Bitcoin for the long term. Schiff’s skepticism about Bitcoin is not new; he has previously questioned its future amid excitement over Ethereum spot ETF approvals and declared Bitcoin to be in a bear market despite the hype surrounding Bitcoin ETFs. Schiff’s concerns about potential ETF-driven volatility may contribute to market uncertainty. The ongoing debate between Schiff and other market analysts highlights differing perspectives, which could influence investor sentiment and impact Bitcoin’s price.
Bitcoin is currently trading around $67,850, facing challenges in maintaining its position above the pivot point at $65,985. Immediate resistance is observed at $67,600, followed by further resistance levels at $69,200 and $71,000. These levels indicate potential barriers for upward movement in the near term. On the downside, Bitcoin has immediate support at $64,600, with additional support levels at $63,450 and $62,200. These levels are crucial for preventing further declines and maintaining the current price structure. The Relative Strength Index (RSI) is at 37, suggesting bearish momentum. Additionally, Bitcoin’s price is below the 50-day Exponential Moving Average (EMA) of $69,000, which further supports the bearish outlook.
Bitcoin remains bullish above the pivot point at $65,985. However, if the price breaks below this level, it could trigger a sharp selling trend. Investors should closely monitor these key levels to gauge the market’s direction. The upcoming inflation data and FOMC decisions are critical for Bitcoin’s price, as they will provide insights into the Federal Reserve’s future monetary policy stance and its impact on the US dollar and inflation. As the market navigates these uncertainties, investor sentiment will play a crucial role in determining Bitcoin’s trajectory.
