Bitcoin saw a reversal of its gains from the previous day on June 13th as investors prepared for the release of the next round of United States inflation data.
On the 1-hour chart for BTC/USD, Bitcoin failed to maintain its momentum from the Consumer Price Index (CPI) data, causing the price to drop back below $70,000. The price dipped to new lows of $66,983 on Bitstamp, with Bitcoin down approximately 1.3% at the time of writing.
Despite initial excitement over lower-than-expected CPI readings and the Federal Reserve’s interest rate meeting, where policy remained tight, Chair Jerome Powell’s comments spooked risk assets. Powell mentioned that interest rate cuts were not currently being considered, leading to a sell-off in the market.
Market participants reduced their expectations of a rate cut at the Fed’s September meeting by about 10%, according to data from CME Group’s FedWatch Tool. This shift in sentiment towards a more hawkish stance by the Fed caught some investors by surprise.
Analyzing Bitcoin’s price action, it became evident that large investors, known as Bitcoin whales, were influencing price volatility. The order book liquidity and external factors like U.S. macroeconomic data were driving price movements in both directions.
Looking ahead, it was crucial for Bitcoin to establish $69,000 as a strong support level to avoid further downside. Material Indicators emphasized the importance of technical analysis and monitoring key levels to navigate the volatile market environment.
This article serves as information only and does not offer investment advice. Readers are encouraged to conduct their own research and due diligence before making any investment decisions.