BTC price action shrugs off the latest signs that inflation is receding, with Bitcoin traders focused on Fed comments.
Bitcoin (BTC) stuck to $26,000 on June 14 as fresh United States macroeconomic data prints failed to move cryptocurrency markets.
PPI offers Bitcoin bulls little fuel
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying stubborn as Producer Price Index (PPI) data showed U.S. inflation continuing to slow.
US PPI just came in:
-0.3% vs 0.2% previously
-0.1% was predictedJust like yesterday, was lower than the predictions, furthering the likelihood of a pause at tomorrows #FOMC meeting. https://t.co/SymSTWwHSS
— Decentrader (@decentrader) June 14, 2023
In line with its reaction to the Consumer Price Index (CPI) print the day prior, the pair failed to offer traders volatility, sticking to a familiar range between various moving averages.
Market commentators thus turned to the day’s upcoming Federal Reserve decision on interest rates, as well as subsequent comments from Chair Jerome Powell, for a source of inspiration.
Big Day!
8:30am ET PPI Data should trigger some volatility. #TradFi and #Crypto markets want to see PPI trending down, but the BIG story of the day is the 2pm FED Decision and longer range interest rate projections.
Regardless of the 2pm Decision, #JPow's comments at 2:30pm… pic.twitter.com/osrjCiAgcr
— Material Indicators (@MI_Algos) June 14, 2023
“Happy hawkish pause day!” financial commentator Tedtalksmacro wrote in part of the day’s analysis.
Tedtalksmacro referenced major U.S. bank projections for the Fed to halt its rate hike cycle in place since late 2021.
The latest data from CME Group’s FedWatch Tool continued to fall in line with the forecast, showing 92% odds of a rate hike pause at the time of writing.
Beyond the rate decision, U.S. dollar strength formed a topic of debate among Bitcoin analysts, with Crypto Ed eyeing a potential bounce from support that could cause problems for BTC/USD.
“DXY reached green box and bouncing a bit,” he commented alongside a chart of the U.S. dollar index (DXY).
“If this means its correction is finished and it continues its way up, I’m expecting pressure on BTC.”
Nearly three months of BTC price “falling wedge”
When it comes to BTC price action overall, popular trader and analyst Rekt Capital adopted a more optimistic view.
Related: SEC, CPI and a ‘strong rebound’ — 5 things to know in Bitcoin this week
Despite the tense atmosphere on the back of negative catalysts, specifically the U.S. legal onslaught against major exchanges, he noted that BTC/USD had fallen less than 20% below its local highs of $31,000 from April.
#BTC has only retraced -19% since its mid-April local top
With all the negative catalysts and FUD, one would've instinctively felt that the retrace was so much deeper than that$BTC #Crypto #bitcoin
— Rekt Capital (@rektcapital) June 14, 2023
Fellow trader Moustache likewise adopted a positive take on the current scenario, arguing that on longer timeframes, recent events had left BTC price action little changed.
#Bitcoin – Update
Today FOMC takes place and $BTC still looks like this.
– In a Falling Wedge for 2.5 months
– Above the EMA 21 (bull market line) pic.twitter.com/dWjLbJ3VMZ— ⓗ (@el_crypto_prof) June 14, 2023
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
