As a seasoned crypto investor with a keen interest in market trends and fundamental analysis, I believe that the upcoming release of the Consumer Price Index (CPI) report in the US is an important event that could significantly impact Bitcoin’s price action. The CPI is a critical measure of inflation in the United States, and its release has historically caused volatile price movements in various asset classes, including Bitcoin.
As a researcher studying the cryptocurrency market, I’ve noticed a fresh wave of excitement sweeping through it, with Bitcoin leading the charge but meme coins like Shiba Inu and Pepe Coin experiencing particularly robust growth. The optimism among investors is palpable, as they eagerly anticipate higher weekly closing prices after several weeks marked by uncertainty. In my analysis of this Bitcoin price prediction, I aim to examine both its technical and fundamental aspects in the run-up to the highly anticipated release of the Consumer Price Index (CPI) report in the US.
BTC Price Prediction Ahead Of CPI Data Release
In the US, the Consumer Price Index (CPI) is a highly valued indicator of inflation. This statistical gauge tracks the fluctuations in the costs of typical consumer items and services, offering insights into long-term price trends.
The US Bureau of Labor Statistics (BLS) is responsible for computing and publishing the Consumer Price Index (CPI) figures as a composite measurement. Many market observers and economic analysts are looking forward to BLS’s upcoming data disclosure, scheduled for May 15.
If inflation continues into April, the risk associated with volatile assets such as Bitcoin, cryptocurrencies, and stocks will increase. The past few weeks have seen some volatility in prices, which could potentially lead to a further correction towards $50,000 for Bitcoin. However, the bullish trend was somewhat bolstered by support at $56,500 last week, helping to maintain the optimistic outlook.
This week adds significance for bulls as Federal Reserve Chairman Jerome Powell is scheduled to deliver a public statement on May 14. Concurrently, investors look forward to the unveiling of the Producer Price Index (PPI) during his speech.
As an analyst, I’ve observed that markets exhibit heightened reactivity and sensitivity whenever Federal Reserve Chairman Jerome Powell shares his perspectives, particularly when they hint at upcoming monetary policy moves. Currently, the investment community is not anticipating a rate reduction during the June Fed meeting in 2024. Instead, their focus has shifted towards September as the potential month for the first rate cut that year.
Will Bitcoin Price Surge Or Fall With CPI Data Release
Bitcoin has seen three successive daily green closes following the red candle on May 10, resulting in a 2.1% rise to hit $62,634. This uptick is helping to bolster the overall upward trend. However, according to predictions, Bitcoin is expected to continue navigating through volatile markets until it manages to reclaim its support levels at the 20-day and 50-day Exponential Moving Averages (EMAs).
With a somewhat optimistic prediction from the MACD indicator, there’s a higher probability that Bitcoin will reach $70,000 by May. However, it’s important to note that the current MACD reading of -864 and short green histograms could potentially signal selling pressure on the market.
Traders need to use great care in their transactions, given the numerous macroeconomic developments taking place this week. The price of a particular asset falling below $60,000 is a distinct possibility, which could lead to further correction down to $56,500. In a worst-case scenario, the price may even drop towards $50,000.
From an analyst’s perspective, on the opposing side of the coin, favorable Consumer Price Index (CPI) figures might encourage investors to fuel a Bitcoin price rise towards $70,000. Noteworthy thresholds that could trigger fear of missing out (FOMO) among investors are surmounting the resistance levels at $65,000 and $67,500.
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2024-05-13 21:44