Bitcoin gives profit as ‘hawkish’ Fed charges trip to $70k
Bitcoin retook earlier gains on June 13 as markets braced for the next US inflation data.
As the $70,000 fades, Bitcoin fails to hold the CPI
Data from Cointelegraph Markets Pro and TradingView showed BTC price reversal after the daily close after BTC/USD touched $70,000.
The subsequent rout resulted in new lows of $66,983 on Bitstamp, with Bitcoin (BTC) down 1.3% at the time of writing.
Below-expected readings from the consumer price index (CPI) built cheers, with the Federal Reserve's meeting of interest rates keeping policy expectedly restrictive.
Accompanying comments from Chairman Jerome Powell, however, appeared to worry riskier assets as he reiterated that interest rates were not yet in discussion.
“We think the policy is restrictive. “We think, ultimately, if you only put out policy at a restrictive level, you will eventually see a real weakening in the economy,” he told reporters at a press conference after the event, which CNBC and others reported.
“So that's always been the idea, you know, because we've raised rates to this point, we're always going to suggest cuts at some point.”
According to data from CME Group's FedWatch Tool, markets have already discounted rates at the Fed's September meeting by about 10%.
“Today's FOMC is definitely more hawkish than expected,” financial analyst Tedtalksmacro responded on X.
“However, the market had already priced in this scenario as inflation continued to deviate from the real path from today (in CPI data). That's clear from how stocks have moved. […] Crypto will follow.
Analysis: $69,000 is key to ‘range' BTC price.
Analyzing BTC price volatility, Trading Resources Material Indicators revealed the role of Bitcoin whales in intraday price volatility.
RELATED: Bitcoin Stock Hits Pre-2020 Bull Run Levels – Is BTC Ready To Break $70K?
“Watching Bitcoin fully track the morning pump is more evidence that these killer whale games are playing out exactly as I described in my analysis from Friday,” X's post argued.
Material indicators use external factors such as US macro data as a platform to bounce prices up and down and book balance the changes in progress.
By extension, he continued, the picture remained the same – $69,000 was the key level to establish support.
“Everything you need to know is in the charts,” the article concluded.
“IMO, the most important low is not to print, and BTC will finally confirm the R/S Flip at $69k. Until then, BTC remains region-bound.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
