Bitcoin Price Analysis: Markets Brace for US Inflation Data as BTC Fails to Hold $70,000 Upside

Bitcoin (BTC) experienced a retracement of the prior day’s gains on June 13th as markets awaited the release of the next round of United States inflation data. The BTC/USD 1-hour chart showed a reversal in BTC price trajectory after briefly touching $70,000, with the subsequent drop leading to new lows of $66,983 on Bitstamp. At the time of writing, Bitcoin was down around 1.3% for the day.

The excitement in the market had been fueled by lower-than-expected readings from the Consumer Price Index (CPI), while the Federal Reserve’s meeting on interest rates maintained a predictably restrictive policy stance. Federal Reserve Chair Jerome Powell’s comments during a press conference after the event seemed to unsettle risk assets as he reiterated that interest rate cuts were not currently being discussed.

Market participants reduced their bets of a rate cut at the Fed’s September meeting by around 10%, according to data from CME Group’s FedWatch Tool. Financial commentator Tedtalksmacro noted that the FOMC meeting was more hawkish than anticipated, with the market already pricing in this scenario. The focus shifted to the ongoing disinflation trend highlighted by the CPI data and its impact on asset prices.

Analyzing BTC price dynamics, trading resource Material Indicators pointed out the role of Bitcoin whales in driving price volatility. The article referenced ongoing shifts in order book liquidity and external factors like U.S. macro data influencing price movements. The key level to watch for BTC was identified as $69,000, with the need to establish it as a strong support level to avoid further downside.

The post concluded by emphasizing the importance of monitoring the charts and avoiding printing a lower low for BTC. Until Bitcoin validates a reversal and support at $69,000, it is likely to remain range-bound. The article stressed that it did not contain investment advice and urged readers to conduct their own research before making any trading decisions.

In conclusion, the Bitcoin market faced a period of uncertainty as investors digested the latest inflation data and the Federal Reserve’s policy stance. The focus remained on key price levels and the influence of external factors on BTC’s price trajectory. Traders were advised to exercise caution and monitor market developments closely to navigate the current volatility.