Bitcoin (BTC), the leading cryptocurrency, faced challenges in halting its recent bearish trend, with prices hovering around $67,824 and hitting an intra-day low of $66,600. This downturn followed the release of robust US labor market and Services PMI data, which tempered investor expectations of a September Fed rate cut and diminished demand for riskier assets.
Moving forward, Bitcoin investors are closely monitoring forthcoming comments from Fed officials, particularly from Fed’s Waller scheduled for Friday. Hawkish remarks could potentially weigh on Bitcoin, while upcoming US Durable Goods Orders and Michigan Consumer Sentiment Index reports are also poised to influence market sentiment.
The recent strengthening of the US dollar, buoyed by positive economic data, has reduced the likelihood of a Federal Reserve rate cut in September, subsequently exerting pressure on the crypto market, including Bitcoin. Atlanta Fed President Raphael Bostic’s remarks on ongoing inflation concerns further underscored the potential for the Fed to maintain higher rates to prevent economic overheating.
While the probability of unchanged rates in September rose from 41.9% to 48.4% on May 23rd, other economic indicators such as the US Initial Jobless Claims, which fell by 8,000 to 215,000 for the week ending May 18, and positive PMI data have contributed to the strengthening US dollar and its impact on Bitcoin prices.
Despite these challenges, recent regulatory changes in the US have instilled a bullish sentiment for Bitcoin. Notable developments include Congress members advocating for SEC approval of spot Ethereum (ETH) ETFs and the passing of the FIT21 bill, which clarifies cryptocurrency regulations. Moreover, significant accumulation of Bitcoin by major holders, known as “whales,” and substantial inflows into Bitcoin-linked ETFs reflect growing demand for the cryptocurrency.
In terms of technical analysis, Bitcoin (BTC/USD) is currently trading at $67,860, with a 4-hour chart highlighting a pivot point at $68,263. Immediate resistance levels to monitor include $70,029, $71,458, and $73,299, while immediate support levels are situated at $66,357, $64,947, and $63,490. The Relative Strength Index (RSI) suggests Bitcoin is approaching oversold conditions, while the 50-day Exponential Moving Average (EMA) indicates a bearish trend as prices trade below this average.
In conclusion, Bitcoin’s current price action suggests a bearish outlook below $68,250, with potential resistance and support levels outlined. However, ongoing regulatory changes and macroeconomic factors continue to shape Bitcoin’s trajectory, warranting vigilance from investors.
