Bitcoin
Will it be $70,000 or $56,000 this week?
A new tailwind is circulating in the crypto market, awakening the price of Bitcoin but favoring meme coins like Shiba Inu and Pepê Currency. Investors are buoyant with hopes of seeing higher weekly closes after weeks of increasing uncertainty. This Bitcoin price prediction seeks to assess the technical and fundamental structure of Bitcoin prior to the release of the Consumer Price Index (CPI) report in the USA.
Bitcoin price prediction before CPI data release
The CPI is one of the most valuable measures of inflation in the United States. It measures the overall change in the prices of goods and services purchased by people in the economy over time.
The US Bureau of Labor Statistics (BLS) is the organization that calculates and releases CPI metrics as a weighted average. Market watchers and economists eagerly await the BLS to release the data on May 15.
If inflation persists in April, the level of risk in volatile assets like Bitcoin, cryptocurrencies and stocks will increase. Price movement in recent weeks has sparked a further correction towards $50,000, although support at $56,500 helped drive the bull run narrative last week.
This week also ups the ante for bulls, with Federal Reserve Chairman Jerome Powell making a public comment on May 14. At the same time, with his speech, the markets anticipate the release of the Producer Price Index (PPI).
Markets have been very receptive and sensitive to Powell’s comments, and precisely when they address the Fed’s intended policy decisions. Overall, investors do not expect a rate cut at the Fed’s next meeting in June. Eyes are now on September for the first rate cut in 2024.
Bitcoin price will rise or fall with CPI data release
Bitcoin is trading for the third consecutive daily green candle after the last red candle on May 10. The 2.1% increase to $62,634 helps stabilize the uptrend. However, BTC Price The forecast shows that the largest crypto will remain in danger as long as support at the 20-day exponential moving average (EMA) and 50-day EMA is not recovered.
BTC Price Prediction Chart | Trading view
The slightly optimistic outlook of the Moving Average Convergence Divergence (MACD) indicator further increases the chance of a Bitcoin breakout to $70,000 in May. However, its current position at -864, coupled with short green histograms, introduces the potential risk of sell-side pressure.
Traders should exercise caution, especially with various macroeconomic activities this week. A drop below $60,000 is still possible, which could extend the correction to $56,500 and if pressure reaches $50,000.
On the other side of the fence, positive CPI data could encourage investors to support a Bitcoin Price rise to $70,000. The key milestones likely to ignite FOMO will be the climb above the $65,000 and $67,500 resistance areas.
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