Bitcoin Overshoots US PPI as BTC Price Recovers Below $59K
Bitcoin (BTC) neared $61,500 on Wall Street on October 11 as it ignored a new US inflation curve ball.
BTC/USD 1-Hour Chart. Source: TradingView
When PPI increases, Bitcoin avoids a new dip
Data from Cointelegraph Markets Pro and TradingView showed new local highs of $61,476 on Bitstamp.
The latest US macro data publication on the producer price index (PPI) beat estimates across the board, coming in at 1.8% versus expectations of 1.6%.
An official press release from the Bureau of Labor Statistics (BLS) said, “The final demand index for small food, energy and business services rose 0.1 percent in September after rising 0.2 percent in August.
For the 12 months to September, prices for food, energy and business services last rose 3.2 percent.
US PPI 1-Month % Change. Source: BLS
Therefore, the PPI has been combined with the Consumer Price Index (CPI), indicating an increase in inflation, and the latter has already caused a “nightmare” for the Federal Reserve.
Responding, marketing materials used the results to say the Fed's 0.5% interest rate cut last month was unnecessary.
“Both Core PPI and CPI inflation are now officially on the rise,” he wrote on X.
“The Fed does not need to cut rates by 50 basis points.”
Crypto and risk-assets have been volatile this week, with stocks moving higher, while bitcoin and altcoins have seen selling pressure, thanks to the Fed's action.
The PPI publication had a modest impact on market expectations for the Fed's next rate hike in November. According to the CME Group's FedWatch Tool, the probability of a 0.25% daily rate cut is nearly 84%, and at current levels, the probability is roughly 17%.
Fed target rate odds. Source: CME Group
Traders describe key BTC price levels to watch.
Tracking BTC's price action, market watchers have seen potential resistance high on the chart.
RELATED: BTC Price Gets ‘On The Horizon' As Bitcoin Whales Buy 1.5M BTC – Analysis
“Bitcoin bounced back to $60,600/$800 overnight,” wrote analyst Justin Bennett in his latest X analysis, citing a partial recovery from $58,860.
“I never believe in an Asian session pump, but if this holds, we can try that $62k again.”
BTC/USDT Perpetual Contract 4-Hour Chart. Source: Justin Bennett/X
Renowned businessman Roman is hoping for a $65,000 return visit, carving out a unique distinction.
Fellow Lion, meanwhile, has identified two key levels below the set price to watch in the short term.
“Refunding $63,9k and flipping s/r will lead to short-term continuous separation,” he told X's followers.
“- $60,2k crash could give us another dip (imo final volatile dip).”
BTC/USD 8-hour chart. Source: Lion/Ex
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.
