The price of Bitcoin (BTC) increased by 3% on May 13 as cryptocurrency traders anticipated price volatility leading up to the release of macroeconomic data in the United States. Data from Cointelegraph Markets Pro and TradingView showed that the price of BTC reached a high of $63,269 on Coinbase shortly after the opening of the Wall Street market on May 13.
Traders are eagerly awaiting the release of inflation data in the United States this week, as it will help determine whether the Federal Reserve will lower interest rates in 2024. The Producer Price Index (PPI) data is expected to be released on May 14, followed by the Consumer Price Index (CPI) data on May 15. Market analysts, according to the CME’s FedWatch tool, are currently forecasting a 72% chance of interest rates remaining the same at the Federal Open Market Committee (FOMC) meeting in July. However, there is a possibility of rate cuts being implemented later in 2024, with a current forecast of 48.6% at the September meeting. Traders are predicting a 91.1% chance that rates will remain unchanged at the June meeting.
Popular analyst Tedtalksmacro commented on the market dynamics for the week, stating that the “inflation data is center-stage.” He explained that reducing inflation would be beneficial for risk assets like Bitcoin and could potentially lead to a significant increase in the market. Fellow analyst Seth shared a chart showing that the relative strength index (RSI) had broken above a descending trendline on the daily timeframe. Seth acknowledged that this week’s CPI, Core CPI, PPI, and FED chair speech are likely to impact the direction of BTC’s price.
Bitcoin has been in a prolonged downtrend since reaching its all-time high of $73,835 on March 14. The price has been consistently lower, with the RSI trending downwards and reaching near-oversold conditions at 33 on May 1. The Coinbase Premium Index, which represents the percentage difference between the BTC/USDT pair on Binance and the BTC/USD pair on Coinbase Pro, has mirrored BTC’s price action during this period, dropping from $0.08 to near zero. According to analysts at CryptoQuant, the Coinbase Premium Index is a leading indicator that can be used to predict the future price of BTC. Historically, when this indicator turns negative and reverses from a downward to an upward trend, the price of BTC has always rebounded.
Crypto trader Moustache expressed optimism, stating that the current market moves should result in a sustained upward trend, similar to previous post-halving cycles. He advised his followers that weak hands need to exit the market before BTC can rise towards $80,000.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.