Bitcoin (BTC) threatened to give back its first week of gains on May 14 as macro data reports showed increased volatility.
BTC price “bahts” up and down with PPI, Powell.
Weak BTC prices entered the hourly session, falling as low as $61,440 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD soared to $63,450 the previous day, a level where short selling was clearly at risk.
“If Bitcoin can clear $63,000, overleveraged shorts will come under pressure,” trading resource Material Indicators warned in part of a post about X at the time.
Bulls ultimately failed to find momentum, and data from monitoring resource CoinGlass shows massive amounts of liquidity trending lower at the time of this writing.
Material Indicators noted that bids were strengthening to $60,000 and $65,000 ahead of the U.S. economic report.
This will be announced in the form of the Producer Price Index (PPI) along with comments from Federal Reserve Chairman Jerome Powell.
“It is not uncommon to see ‘guardrails’ placed on order books ahead of FED speeches and economic reports,” another X post read in part.
“It’s not uncommon to see them pulled away at the last minute.”
As Cointelegraph continues to report, Bitcoin has made a habit of staying in a narrow range since late April, neutralizing liquidity both above and below the spot price.
Analysts: Expect a “more critical” response to macro data.
Financial commentator Tedtalksmacro revealed an unusual setup this week considering the potential impact of the PPI numbers.
Related: CPI Meets $60,000 BTC Price War; 5 things to know in Bitcoin this week
He pointed out that the PPI will come out before the April consumer price index (CPI) reading and will present traders with a rare scenario that does not take into account wildcard omissions in the data itself.
He told his
“PPI + CPI data have a very strong correlation. Historically, PPI is the leading CPI figure. So if expectations are wrong, we expect the market to react more strongly than usual.”
Data from CME Group’s FedWatch tool highlighted that it would take a serious surprise to change market expectations that the Federal Reserve would cut interest rates before September.
The odds of a 25 basis point cut at the Federal Open Market Committee (FOMC) meeting in June were just 3.5% at the time of this writing, and 24.6% at the July meeting.
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