Bitcoin (BTC) saw flash volatility bottom near $61,000 during May 14 as U.S. inflation data came in.
US PPI compliance ahead of Powell’s speech
Data from Cointelegraph Markets Pro and TradingView continues to chart choppy BTC price conditions as it opens on Wall Street.
The producer price index (PPI) for April was announced at 2.2%, as expected, and is still showing an increase for the third consecutive month.
“Final demand prices excluding food, energy and trade services rose 3.1% in the 12 months ended in April, the largest increase since they rose 3.4% in the 12 months ended in April 2023,” an official from the U.S. Treasury said. A press release announced. Labor statistics confirmed.
Cryptocurrency markets avoided the impact of a severe PPI decline, but risk assets were still adversely affected.
“PPI inflation rose for three consecutive months for the first time since April 2022,” trading resource Kobeissi Letter wrote in part. answer At X (formerly Twitter).
“It’s another sign that the Fed can’t cut interest rates.”
Kobeissi cited ongoing bets on how the Federal Reserve will cut interest rates.
Federal Reserve Chairman Jerome Powell was scheduled to add a variety of signals that markets are paying attention to in a speech at 10 a.m. ET.
“We expect Powell’s speech tonight to be, as always, carefully worded and the market reaction to be muted,” trading firm QCP Capital said in its latest update sent to subscribers of its Telegram channel.
QCP added that the May 15 consumer price index (CPI) “could finally be the catalyst that helps the market choose its direction.”
BTC price “preparing for a new move higher”
There was a feeling of indecision among Bitcoin traders as the range-bound price fluctuations continued.
Related: CPI Meets $60,000 BTC Price War; 5 things to know in Bitcoin this week
As Cointelegraph reported, a significant block of liquidity was returned to the order book to sandwich the macro data and spot prices ahead of Powell’s appearance.
However, during his latest analysis, popular trader Jelle highlighted three conditions that the current BTC upside potential meets.
This included a retest of the 100-day exponential moving average as support, currently at $60,409. The moving average convergence/divergence (MACD) indicator has also now shown strength on the daily time frame, he noted.
Jelle added that $65,000 is the limit for a bullish scenario to play out.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.