Markets
Will it be $70,000 or $56,000 this week?
A new favorable wind is spreading across the cryptocurrency market, reawakening the price of Bitcoin but favoring it meme coins like Shiba Inu and Pepe Moneta. Investors are beaming with hopes of seeing higher weekly closes after weeks of growing uncertainty. This Bitcoin price prediction aims to evaluate the technical and fundamental structure of Bitcoin before the release of the Consumer Price Index (IPC) relationship in the United States.
Bitcoin Price Predictions Ahead of CPI Data Release
The consumer price index is one of the most popular measures of inflation in the United States. It measures the general change in prices of goods and services purchased by people within the economy over time.
The U.S. Bureau of Labor Statistics (BLS) is the organization that calculates and publishes CPI metrics as a weighted average. Market watchers and economists are eagerly waiting for the BLS to release the data on May 15.
If inflation persists in April, the risk level of volatile assets such as Bitcoin, cryptocurrencies and stocks will increase. Price movement in recent weeks has suggested a further correction to $50,000, although support at $56,500 helped support last week’s bull run narrative.
The stakes also increase for bulls this week with Federal Reserve Chair Jerome Powell expected to make public comments on May 14. Furthermore, his speech on the markets comes ahead of the release of the Producer Price Index (PPI).
Markets have been very responsive and sensitive to Powell’s comment, and just as it touches on the Fed’s expected policy decisions. Overall, investors do not expect a rate cut at the next Fed meeting in June. All eyes are now on September for the first rate cut in 2024.
The price of Bitcoin will rise or fall with the release of CPI data
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 cryptocurrency will remain in the woods until the support at the 20-day exponential moving average (EMA) and 50-day EMA is recovered.
BTC Price Prediction Chart | Tradingview
The slightly bullish outlook of the Moving Average Convergence Divergence (MACD) indicator further increases the possibility 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 need to pay attention, especially with the various macroeconomic activities this week. A drop below $60,000 is still possible, which could extend the correction to $56,500 and, if push comes to shove, towards $50,000.
On the other side of the fence, positive data on the consumer price index could push investors to support a Bitcoin price rise to $70,000. Key milestones that could trigger FOMO will be the climb above the $65,000 and $67,500 resistance areas.
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