BTC price clears $41K on Fed FOMC day as Bitcoin digests US macro data.
Bitcoin (BTC) rebounded above $41,000 on Wall Street on December 13 as eyes focused on the US Federal Reserve.
The PPI target shot comes hours before the Fed's rate cut.
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength buoyed by recent US macro data releases.
November's producer price index (PPI) print came in below expectations, further reinforcing the narrative of declining inflation. The publication of the Consumer Price Index (CPI), while less encouraging, did not bring new pain to risk assets.
“This is the lowest PPI inflation since December 2021,” marketing resource Kobeisi wrote in part in response to X's (formerly Twitter) letter.
“Since the Fed's last meeting, we have seen several favorable inflation publications. All eyes are on the Fed today and it could be a hint of a ‘Fed pivot'.
Kobesi referred to the main macro event of the week, the meeting of the Federal Open Market Committee (FOMC) and the decision on interest rate changes. The decision will be made at 2:00 p.m. ET, and Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m.
Both events are apt to spark temporary volatility in crypto and beyond, but Bitcoin's response to the macro data has remained muted.
According to data from CME Group's FedWatch Tool, at the time of writing, markets were confident that there would be no rate changes as a result of the FOMC meeting.
Trader Eyes Key BTC Price Levels For “Action”
The low-term BTC price action, meanwhile, lacked a clear trend.
Related: Bitcoin ‘sodlers' drop $4B in two days as BTC sales hit 18-month high
With the current support and resistance levels intact, prominent trader Jhelem reiterated the importance of the $48,000 level.
“While the lower time frames look bullish, Bitcoin appears to be reversing the mid-range levels. $48,000 is still the key level to beat – after that it's up to the price discovery arm,” he told X subscribers on the day.
The day's analysis predicts more downside behavior, with Jelle already betting on “most of the downside” for Bitcoin.
Looking at the liquidity levels, fellow trader Dan CryptoTrades sees rich bets increasing in the zone where the spot price is now in the process of clearing.
“As it cuts sideways, it is building some large liquid pools,” he wrote alongside data from statistical data source CoinGlass.
“Specifically: 40.5K and $41.4K. Expect some action around those levels.
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.
