Bitcoin (BTC) experienced increased volatility on May 14, causing it to potentially give back its early week gains. The BTC/USD 1-hour chart showed weakness, resulting in a dip to $61,440 on Bitstamp. Despite reaching a high of $63,450 the day before, bulls failed to sustain momentum. CoinGlass data indicated that a significant amount of liquidity had been taken to the downside. Material Indicators noted that bids were strengthening at $60,000 and $65,000 ahead of economic reports from the United States, including the Producer Price Index (PPI) print and commentary from Federal Reserve Chair Jerome Powell. Bitcoin has been neutralizing liquidity above and below its spot price while remaining within a narrow range since late April. Financial commentator Tedtalksmacro highlighted the unusual setup of PPI data being released before the Consumer Price Index (CPI), which could impact traders’ expectations. Data from CME Group’s FedWatch Tool suggested that significant surprises in macro data would be needed to change market expectations of an interest rate cut from the Federal Reserve before September. As always, readers should conduct their own research and make informed decisions when it comes to investments and trading.
Bulls Brace for Macro Data as Bitcoin's 'Guardrail' Strengthens at $60K