CPI Meets $60K BTC Price War – 5 Things to Know in Bitcoin This Week

Bitcoin (BTC) starts the new week cautiously guarding the $60,000 support as sentiment crosses the line between bullish and bearish.

BTC Price Action Sticks Tight to Narrow Trading Range – What Could Cause a Dramatic Momentum Change?

This week is as good a time as any for crypto market volatility. US macro data, coupled with Federal Reserve Chairman Jerome Powell's comments, could be an explosive mix for risk assets.

Even in this established range, there is plenty of risk for Bitcoin bulls – the market has already been teasing a deeper correction, and traders are marking levels that may come next.

These mainly focus on tender liquidity below $50,000 – the attractive zone of long-term market bottoms. In the short term, however, BTC/USD looks more inclined to clear liquidity upwards as the week begins.

Cointelegraph looks at the current state of play when it comes to BTC/USD performance.

BTC price: All around $60,000.

The fact that the weekly close went unnoticed means that Bitcoin is still in familiar territory as the week's TradFi sessions get underway.

Data from Cointelegraph Markets Pro and TradingView show no shortage of volatility in BTC/USD over the weekend.

Crucially, it was held on May 3 after the $60,000 return, and for some, this level represents a bulls' line in the sand.

Commenting on a chart attached to X, noted analyst Mark Cullen suggested a “bullish order block” of bid interest below $60,000.

“Bitcoin still holds above 60k and downtrend break,” he wrote.

“That blue OB will be the key in the short term, lose it and we'll revisit the lows and probably much lower. Take another leg to take the liquid from the 64-67k highs.”

Cullen added that this week's macroeconomic data releases, particularly the Consumer Price Index (CPI) on May 14, should be critical for BTC price action.

As Cointelegraph reports, the $60,000 zone represents overbids – key averages and other bull market support trends are converging there.

A group that popular trader Diane CryptoTrades calls “Bull Market Support Bands” still shows bullishness.

“Last week it actually broke out of a bull market support band,” he told X followers over the weekend.

“He's been very supportive so far in this and previous bull cycles. Let's see how we do from here.”

A support band is formed by two exponential moving averages or EMAs.

The latest data from wealth tracker CoinGlass meanwhile shows that on May 13, a new $65 million bid was held at around $60,250.

The cloud of questions waiting in the wings above $62,000 is now being cleared in the next price war arena.

A day earlier, another trader said he suspected “friendly position buying” in support of nearly $60,000 to avoid a skew test.

“Bid depth $60K – $58K in overall good position,” added part of X's comments.

CPI hits like the Fed's Powell, as a result of speaking.

All eyes are on macroeconomic developments in the US this week as data releases come thick and fast.

The CPI forms the highlight of the inflation debate and risk-reward expectations of interest rate cuts.

Before that, however, May 14 will see the release of the Producer Price Index (PPI) for April, along with a public speech by Fed Chairman Powell.

Powell will discuss the economy during a meeting with De Nederlandse Bank, Dutch central bank president Klaas Knoth, at the Foreign Bankers Association's annual general meeting in Amsterdam.

Markets have proven to be highly sensitive to Powell's tone as it hints at future policy moves.

The latest data from CME Group's FedWatch Tool underscores sentiment — traders see no chance of a rate cut at the next Fed meeting in June, with the odds rising sharply in September.

“If CPI inflation rises again this week, it will mark the third straight monthly increase.

Long-term holders have stopped the distribution of 2024 BTC

According to some on-chain data, current Bitcoin hodlers are broadcasting a 2021 bull market.

On a positive note, long-term holders (LTHs) are increasing their BTC exposure after the 2024 market split.

This is the conclusion of JA Maartunn, promoter of the on-chain analysis platform CryptoQuant.

By uploading some of his recent findings to X, he argued that LTH entities are trying to capture more of the BTC supply as early as mid-2021.

“They see the low bitcoin price as an opportunity to stockpile coins cheaply, then introduce them to the market in hap levels,” Martin explained in an accompanying analysis on CryptoQuant.

“Interestingly, a trend line can emerge between the data points from 2018, 2021 and 2024. As mentioned earlier, there is a cyclical trend where long-term holders buy in bear markets and sell in bull markets. However, a broader and more sustainable trend is also at play: despite this cyclical trend, an increasing share of bitcoin is being held by long-term holders.

As Cointelegraph reports, both Bitcoin and Ether (ETH) speculators, known as short-term buyers or STHs, form another nearby support level, which is broadly intact in the current bull market.

The relaunch of the fund remains on the entire crypto

Bitcoin and altcoin market watchers may not have to wait long to see many different scenarios return.

The picture in the current distribution markets shows the degree of neutrality, which now characterizes crypto.

In particular, financial rates remain neutral regardless of recent price movements – Bitcoin's trip to all-time highs in March seems like a blip on the radar.

“Crypto funding volume is now down in isolation from what was overheated in February/March,” Diane CryptoTrades said of the event.

CoinGlass data shows massive funding coming in at the end of March.

“Essentially it goes like this: slow market, crash, overheating, reset. Rinse and repeat,” added Daan Crypto Trades.

“Fear and Doubt”

While prices operate within an established corridor, volatility is already evident elsewhere in crypto.

Related: Bitcoin Trades Sideways as TON, RNDR, PEPE and AR Flash Signals

The Crypto Fear and Greed Index, a well-known measure of market sentiment, has been drifting between states this month.

The lagging indicator uses a basket of factors to determine the bullish trend among crypto traders, with higher readings indicating that the market is seeing a bullish reversal.

Fear and Greed is at 57/100 as of May 13 – a fairly neutral reading and a strong contrast to the 71/100 seen on May 6 – inches from the “extreme greed” zone.

In a new May 11 analysis, research firm Sentiment similarly attributed the slowdown in Bitcoin's on-chain activity to “fear and indecision” on the part of traders.

The accompanying chart shows that the aggregate wallet of actions on the chain has dropped to levels last seen in 2019.

“Bitcoin's onchain activity is nearing historic lows as traders have dramatically reduced transactions in the 2 months since its peak,” Santiment wrote.

“This is not necessarily a sign of more $BTC dips, but rather a sign of public fear and indecision.”

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.