Bitcoin, the decentralized digital currency, experienced a brief but intense price fluctuation on May 14, nearing $61,000, as the release of US inflation data revealed a 2.2% increase in the Producer Price Index (PPI), matching market expectations. Despite the crypto market’s resilience, this inflationary figure posed a negative influence on risk assets, according to market analysis by The Kobeissi Letter.
The US Bureau of Labor Statistics confirmed the April PPI data, showing a 3.1% increase in prices for final demand, excluding food, energy, and trade services, marking the largest advance since April 2023. As Federal Reserve Chair Jerome Powell’s speech was scheduled for 10 am Eastern Time, traders eagerly awaited his insights, expecting a cautious response that might provide direction for the market.
QCP Capital, a trading firm, advised its subscribers that Powell’s speech could potentially be the catalyst for the market to choose a direction, with the May 15 Consumer Price Index (CPI) print being a key focus. Bitcoin traders were divided, with range-bound price movements persisting, awaiting a clear signal for a potential upward move.
Popular trader Jelle identified three conditions that, if met, could support a bullish scenario for Bitcoin. These included the retesting of the 100-day exponential moving average at $60,409 as a support level, and a bullish daily MACD reading. A key resistance level for the bullish scenario was set at $65,000, according to Jelle’s analysis.
It’s important to note that this article does not provide investment advice or recommendations. Every investment decision should be made based on thorough research and individual circumstances. The volatile nature of cryptocurrency markets highlights the potential risks involved.