Bulls Brace for Macro Data as Bitcoin’s ‘Guardrail’ Strengthens at $60K

Bitcoin (BTC) faced a potential reversal of its early week gains on May 14 as volatility increased ahead of macro data reports. BTC price experienced fluctuations, reaching a low of $61,440 on Bitstamp after reaching a high of $63,450 the previous day. Traders warned that if Bitcoin could surpass the $63k mark, heavily leveraged shorts would face consequences. However, bulls failed to gain momentum, resulting in a significant decline in liquidity. Bids at $60,000 and $65,000 were strengthening in anticipation of economic reports, including the Producer Price Index (PPI) and comments from Jerome Powell, the chair of the Federal Reserve. Bitcoin has been displaying a pattern of neutralizing liquidity above and below the spot price while remaining in a narrow range since the end of April. Analysts believe that the macro data will elicit more significant reactions from the market. The release of the PPI data before the Consumer Price Index (CPI) presents a rare scenario for traders. The odds of an interest rate cut from the Fed before September are low, with only a 3.5% chance of a 25-basis-point cut at the June meeting of the Federal Open Market Committee. This article does not provide investment advice or recommendations, and readers are advised to conduct their own research before making any decisions.