The Bitcoin market is in turmoil as Jerome Powell, Chairman of the US Federal Reserve, prepares to deliver a highly anticipated speech. Despite the ambient uncertainty, traders remain optimistic and see the price of BTC crossing the symbolic mark of $65,000.
Bitcoin versus macroeconomic data
The price of Bitcoin experienced sudden volatility on May 14, plunging near $61,000 following the release of US inflation data.
The April producer price index (PPI) was in line with expectations, showing an increase of 2.2%, a third consecutive monthly increase.
If the crypto markets have avoided the consequences of a significant drop in the PPI, the situation remains unfavorable for risk assets.
As the underlines The Kobeissi Letter, a resource specializing in trading, “ PPI inflation is now up for three straight months for the first time since April 2022, showing the Fed can't cut rates“.
In this context, Jerome Powell's highly anticipated speech could have a significant impact on the market. The trading company QCP Capital, however, expects a “ discreet market reaction » and instead sees in the consumer price index (CPI) of May 15 “the catalyst that would finally help the market choose a direction“.
Encouraging technical signals for the price of BTC
Despite the prevailing uncertainty, some traders remain optimistic about the evolution of the price of Bitcoin. According to the famous trader Jelle, three conditions are now met for a rise in BTC. :
- The price successfully tested the 100-day exponential moving average as support, currently at $60,409.
- The MACD indicator has turned bullish on the daily chart.
- The key threshold of $65,000 is identified as the line in the sand to validate the optimistic scenario.
Bitcoin finds itself at a crossroads, with Jerome Powell's speech and CPI data likely to set the tone going forward. Although the macroeconomic context remains tense, technical analysis offers some glimmers of hope for an increase towards $65,000. The next few days will be decisive in determining the short-term trajectory of the queen of cryptos.
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