Bitcoin ‘guardrail’ strengthens at $60K as bulls support macro data
Bitcoin (BTC) threatened to retrace its early gains on May 14 as volatility spiked to macro data reports.
BTC Price Up and Down to PPI, Paul “Barts”
Data from Cointelegraph Markets Pro and TradingView showed BTC price weakness entering the hourly timeframe, dipping to $61,440 on Bitstamp.
BTC/USD managed up to $63,450 a few days ago – a level where shorts are clearly at risk.
“If Bitcoin can clear $63k, overvalued shorts are about to get squeezed,” Trade Input Material Indicators warned in a post on X at the time.
Bulls ultimately failed to gain momentum, and as of this writing, CoinGlass tracking data indicates that a significant amount of liquidity has been moved to the downside.
Material displays indicated bids firming between $60,000 and $65,000 ahead of economic reports from the United States.
These will take the form of the day's publication of the Producer Price Index (PPI) along with comments from Federal Reserve Chairman Jerome Powell.
“It's unusual to see ‘watchdogs' being placed in the order book ahead of Fed speeches and economic reports,” reads part of another X post.
It is also not uncommon to see them pulled at the last minute.
As Cointelegraph continues to report, Bitcoin has developed a habit of neutralizing liquidity above and below the spot price while remaining in a narrow range since late April.
Analyst: Expect a “more significant” response to macro data
Considering the potential impact of PPI numbers, financial analyst Tedtalksmacro has an unusual composition this week.
Related: CPI Meets $60K BTC Price War – 5 Things to Know in Bitcoin This Week
The PPI comes ahead of April's consumer price index (CPI) reading, which itself shows an unusual pattern of traders not giving a loose signal in the data.
“Today is a rare occasion where US PPI data is released a day before CPI data,” he told X followers.
“PPI + CPI data have a very strong correlation. PPI is historically leading to CPI numbers. So expect the market to react more significantly than usual when it loses more than expected.
Data from CME Group's FedWatch tool indicated that serious surprises would be needed to change market expectations of a Fed rate cut in the period before September.
The probability of a 25-basis-point cut at the June meeting of the Federal Open Market Committee, or FOMC, stands at just 3.5%, compared to 24.6% for the July meeting.
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.
