FOMC

United

Chair

Bitcoin

Material

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) threatened to give back early week gains on May 14 as volatility increased into macro data reports.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/2a7c8bd9-b096-49c3-822d-222469bfaa3e.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="btc-price-barts-up-and-down-into-ppi-powell">BTC price “barts” up and down into PPI, Powell</h2>
Data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed BTC price weakness entering hourly timeframes, producing a dip to $61,440 on Bitstamp.
BTC/USD had managed as high as $63,450 the day prior — a level at which shorts faced clear danger.
“If Bitcoin can clear $63k, over leveraged shorts are going to get squeezed,” trading resource Material Indicators warned in part of a post on X&nbsp;at the time.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/9fb07c6c-02a8-41ba-90c7-307617462843.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT order book data for Binance as of May 13. Source: <a href="https://twitter.com/MI_Algos/status/1790008328317280736" target="_blank" rel="noopener nofollow">Material Indicators</a>
 </figcaption>
</figure>
Bulls ultimately failed to find momentum, and at the time of writing, a hefty chunk of liquidity had been taken to the downside, <a href="https://www.coinglass.com/pro/futures/LiquidationHeatMap" target="_blank" rel="noopener nofollow">according</a> to data from monitoring resource CoinGlass.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/5c143489-2f8b-4fde-9520-2b64b8e98103.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin liquidation heatmap (screenshot) as of May 14. Source: CoinGlass
 </figcaption>
</figure>
Material Indicators noted that bids were strengthening at $60,000 and $65,000 in advance of economic reports from the United States.
These would take the form of the Producer Price Index (PPI) print on the day, along with commentary from Jerome Powell, chair of the Federal Reserve.
“It’s not uncommon to see ‘guardrails’ placed in the order book ahead of FED speeches and economic reports,” part of another X post read. 
<blockquote data-ct-non-breakable="true">
 “It’s also not uncommon to see them get pulled at the last minute.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/3da06b11-f79a-4110-8c6e-d3de859d48e3.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT order book data for Binance as of May 14. Source: <a href="https://twitter.com/MI_Algos/status/1790180694888534226/photo/1" target="_blank" rel="noopener nofollow">Material Indicators</a>
 </figcaption>
</figure>
As Cointelegraph continues to report, Bitcoin has<a href="https://cointelegraph.com/news/bitcoin-lacks-60k-btc-price-nears-100m-liquidity-zone"> created a habit of neutralizing liquidity</a> both above and below spot price while remaining in a narrow range since the end of April.
<h2 data-ct-non-breakable="true" id="analyst-expect-more-significant-reactions-to-macro-data">Analyst: Expect “more significant” reactions to macro data</h2>
Considering the potential impact of the PPI numbers, financial commentator Tedtalksmacro revealed an unusual setup this week.
Related:&nbsp;<a href="https://cointelegraph.com/news/cpi-60k-btc-price-battle-5-things-bitcoin-this-week">CPI meets $60K BTC price battle — 5 things to know in Bitcoin this week</a>
PPI, he noted, would come before the Consumer Price Index (CPI) readout for April, presenting a rare scenario for traders that does not account for wildcard misses in the data itself.
“Today is a rare occasion where US PPI data is released the day prior to CPI data,” he told X followers. 
<blockquote data-ct-non-breakable="true">
 “PPI + CPI data have a very strong correlation. PPI leading the way for CPI numbers historically. Thus expect the market to react more significantly than usual on any miss on expectations.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/027dae52-1ceb-4a30-9485-ce4be7662616.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 U.S. PPI vs. CPI data. Source: <a href="https://twitter.com/tedtalksmacro/status/1790243251821371670" target="_blank" rel="noopener nofollow">Tedtalksmacro</a>
 </figcaption>
</figure>
Data from CME Group’s FedWatch Tool <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener nofollow">underscored</a> the need for serious surprises in order to shift market expectations of an interest rate cut from the Fed coming any sooner than September.
The odds of a 25-basis-point cut at the June meeting of the Federal Open Market Committee, or FOMC, stood at just 3.5% at the time of writing, with 24.6% for the July meeting.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/b9202108-d6d8-4a09-a0ab-3be952cbe792.png" alt="" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities for July FOMC meeting. Source: CME Group
 </figcaption>
</figure>
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.

Bitcoin ‘guardrail’ gets stronger at $60K as bulls brace for macro data

Table of Contents

Cointelegraph

Other articles published on May 14, 2024

Bitcoin Backers Return: Weekly Crypto Investments Bounce Back With $130 Million

Keith Gill’s Return Fuels GameStop and Memecoin Buzz

Bitcoin Mining Firms Face Challenges After Halving Event

Solana Shows Strong Performance in Cryptocurrency Market

SEC Is Likely to Reject Spot Ethereum ETFs On The Reason That ETH Is A Security

Decentralized Payments Are Transforming the World’s Financial Sector With These Altcoins at the F...

Join our free newsletter for daily crypto updates!