Spurred by better-than-expected U.S. Consumer Price Index (CPI) data, Bitcoin saw a 1.6% increase in the 13:30 (BST) 30-minute candle to close at $28,197. The move was accompanied by high volume to break a four-day slide for the leading cryptocurrency. Wider macro factors weigh h...
Spurred by better-than-expected U.S. Consumer Price Index (CPI) data, Bitcoin saw a 1.6% increase in the 13:30 (BST) 30-minute candle to close at $28,197.
The move was accompanied by high volume to break a four-day slide for the leading cryptocurrency.
Wider macro factors weigh heavy with Bitcoin uncertainty
Since breaking below $30,000 on April 17, BTC found support at $27,000 on April 24.
It has since been ranging between $27,280 and $30,050 – with both limits showing strong support and resistance, as signified by multiple touches at the respective bands.
Having been rejected at $29,940 resistance on May 6, BTC closed consecutive red daily candles over a four-day period – losing 8% during this time frame.
The current macroeconomic narrative is focused on the $31 trillion debt ceiling and whether the U.S. will default if a bipartisan agreement cannot be thrashed out.
Meanwhile, the Fed’s rate hike program looks to be having the desired effect, at least against month-over-month expectations.
CPI data
CPI rose 4.9% in April, coming in less than the expected 5% rate.
Like CPI, Core CPI also tracks the price of goods and services but differs by way of excluding food and energy prices – which are said to be too volatile to include. Central banks use Core CPI, not CPI, to inform policy.
Meanwhile, throughout this period of uncertainty, Bitcoin has held firm – even showing fleeting signs of safe haven qualities during the banking crisis.
For now, it’s all eyes on June 14 as the market awaits the Fed’s assessment – with many holding out for a pause, which could lead to a pivot.