- May 29, 2024
- Posted by: [email protected]
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Bitcoin (BTC) has demonstrated remarkable resilience, regaining traction despite hawkish remarks from Federal Reserve officials and stronger-than-expected U.S. economic data, which have decreased the likelihood of a Fed rate cut. The cryptocurrency’s value saw a notable increase, peaking at $68,848 intraday and stabilizing around $67,785.
Supporting Bitcoin’s bullish stance, BlackRock’s Bitcoin ETF (IBIT) has emerged as the largest Bitcoin fund, managing close to $20 billion in assets. However, ongoing geopolitical tensions and a strengthening U.S. dollar (USD) could limit Bitcoin’s growth and introduce volatility.
Traders are closely monitoring several key indicators, including the US Core Personal Consumption Expenditures Price Index (Core PCE), the Fed’s Beige Book, and speeches from Federal Reserve officials like John Williams. These events are expected to provide further insights into potential Bitcoin price movements.
The possibility of a Fed rate cut in September has diminished due to hawkish comments from Federal Reserve officials and robust economic data, which have bolstered the USD and constrained Bitcoin’s gains. Fed President Neel Kashkari emphasized the need to see significant progress on inflation before considering rate cuts, anticipating at most two rate cuts in 2024. Fed Governor Michelle Bowman echoed a cautious approach to withdrawing stimulus. This stance suggests that the Fed’s cautious approach will impact both the USD and BTC’s performance.
Consumer confidence has improved, with May’s index rising to 102.0 from April’s 97.0, exceeding the predicted 95.9. This optimism could stimulate economic activity and market performance, indicating a mixed outlook for USD and BTC.
BlackRock’s Bitcoin ETF (IBIT) has overtaken Grayscale’s GBTC as the largest Bitcoin fund, with inflows exceeding $100 million and achieving $19.79 billion in assets under management (AUM) in just four months. This growth, coupled with institutional interest, indicates a positive sentiment for BTC, potentially encouraging further investment in the cryptocurrency market.
Despite recent volatility, Bitcoin’s price stabilized around $68,400. Notable cryptocurrency analyst TechDev foresees a potential market boom, especially for altcoins, drawing parallels to market conditions in 2020. Technical indicators like Gauss channels and Bollinger Bands suggest possible breakouts and bullish cycles for Ethereum and other cryptocurrencies.
Currently, Bitcoin’s price stands at $67,789, marking a 0.15% decrease. The crucial pivot point is $68,352, indicating a bearish price prediction if breached. Immediate resistance is at $68,918, with further resistance at $69,588 and $70,644. Support levels are identified at $67,265, $66,380, and $65,144. The Relative Strength Index (RSI) at 48.40 indicates a neutral market sentiment, while the 50-Day Exponential Moving Average (EMA) at $68,918 serves as an immediate resistance level. Maintaining above the pivot point is essential for Bitcoin to build positive momentum and aim for higher resistance levels.
Bitcoin’s ability to stay above the pivotal $68,350 level is crucial for its future trajectory. Breaching this level could trigger a strong selling trend, while maintaining it could foster positive momentum towards higher resistance levels.
