Bitcoin (BTC) experienced a sudden drop to around $61,000 on May 14 as the United States’ inflation data was released. The price of BTC remained choppy leading up to the opening of the Wall Street market, as indicated by data from Cointelegraph Markets Pro and TradingView.
The Producer Price Index (PPI) for April matched expectations at 2.2%, marking the third consecutive monthly increase. According to the U.S. Bureau of Labor Statistics, prices for final demand, excluding food, energy, and trade services, rose by 3.1% for the 12 months ending in April, representing the largest increase since April 2023.
While the crypto market was not significantly affected by the PPI data, the overall sentiment remained unfavorable for risk assets. The Kobeissi Letter, a trading resource, highlighted that PPI inflation has increased for three consecutive months, a trend not seen since April 2022, which raised questions about how the Federal Reserve might approach interest rate reductions.
Federal Reserve Chair Jerome Powell was scheduled to deliver a speech at 10 am Eastern Time, adding to the factors being closely watched by the market. QCP Capital, a trading firm, anticipated a muted market reaction to Powell’s speech, emphasizing that the May 15 release of the Consumer Price Index (CPI) could be the catalyst for the market to establish a direction.
Bitcoin traders appeared indecisive as the price continued to move within a range. Liquidity blocks were observed returning to the order book ahead of the macro data and Powell’s speech. However, popular trader Jelle identified three conditions for a potential BTC upside: the retest of the 100-day exponential moving average as support, the bullish signal from the moving average convergence/divergence (MACD) indicator on daily timeframes, and the $65,000 level as a critical threshold for the bullish scenario.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.