Despite the decline in the Fed’s prospects, Bitcoin’s price is at $52,000
Bitcoin (BTC) clung to $52,000 at the February 16 Wall Street open as the latest US macro data came in ahead of expectations.
PPI does not provide any relief for Bitcoin, risk assets
Data from Cointelegraph Markets Pro and TradingView showed BTC price action during the weekend TradFi trading session.
Following the publication of the Consumer Price Index (CPI) two days ago, January's Producer Price Index (PPI) numbers added to the US inflation headache.
Year-on-year, PPI came in at 0.9% – slightly lower than a month earlier but still above market forecasts of 0.3%.
Along with a “warm” CPI, the result made markets more nervous about when the Federal Reserve might ease fiscal policy this year.
According to data from CME Group's FedWatch Tool, the odds of the Fed cutting interest rates at its March meeting stood at 8.5% at the time of writing — less than half the 17.5% odds earlier in the week.
“The March interest rate cut can be completely eliminated after this information,” a marketing source wrote in a partial response to the letter of Kobeisi on X (formerly Twitter), reinforcing the response to the CPI.
“Furthermore, the May devaluation has also become questionable.”
$BTC 4H Hopi price action closes multiple internal bars here
There is often a false breakout before the real broad move.
4H 21EMA ~ $51K
Weekly open and major 4H trend ~ $48k – $47k (key HTF area and strategic area) pic.twitter.com/G75BEREfnE
— Skew Δ (@52kskew) February 16, 2024
Bitcoin itself hit $52,884 a day earlier on Bitstamp, its highest level since late November 2021, but bulls faced pressure from sellers.
Analyzing the four-hour time frames, popular trader Skew's 21-time moving average (EMA) is currently close to $51,000.
Choppy price action with multiple inside bars essentially closes on the same intraday balance, he wrote.
There is often a false rumor before the real widespread movement.
If the ETF goes “dry”, the analyst's eyes will drool over BTC.
US spot-bitcoin exchange-traded funds (ETFs) saw nearly half a billion dollars in net inflows on February 15.
Related: Bitcoin Bears Beware – BTC's Rally Above $52K Is Healthier Than Before
This is on top of a remarkable week in which ETF products have seen a “second wind” – more than a month after the initial surge in demand.
Although it removes more BTC per day than is added to its supply, the ETF is worrying some market watchers.
In a recent analysis by Venturefounder, a contributor on chain analysis platform CryptoQuant, a slowdown in ETF interest suggested that Bitcoin could be vulnerable to a major recovery.
“Bitcoin ETF net inflow flatline/normalize is where the next 20-30% correction will begin,” reads X's commentary section, alongside a summary of inflows so far.
The previous post described BTC price floor levels, which extend up to $34,000.
Possible scenarios if demand for #Bitcoin ETF dries up and corrects in the next few weeks:
Applying both 2021 #BTC local top fractals
First drop to $58k, then the correction can stop at these levels: -$52k, $47k, $42k, $38k, $34k (worst case) pic.twitter.com/OVmlTyJVr0
— venturefoundΞr (@venturefounder) February 16, 2024
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.
