Bitcoin, the world’s leading cryptocurrency, made a determined push above the $26,000 mark today as traders eagerly watched for signs of a sustained rally. Analysts noted that the digital asset was attempting to regain its foothold after the previous day’s close, showing resilience amid ongoing legal issues and the anticipation of crucial macroeconomic data releases.
Wu Blockchain, a Chinese media forecasted in a Twitter thread that in the next 12 hours, US CPI may be increased:
In the next 12 hours, the US May CPI data will be released, and the Binance hearing will be held; the concentration of these two big events has pushed the daily option IV up sharply, which is now back above 50% , nearly doubling compared to less than 30% IV a week ago.…
— Wu Blockchain (@WuBlockchain) June 13, 2023
Renowned trader Crypto Tony, in his daily Twitter analysis, cautioned against making significant trades on such a risky day. However, he also highlighted the upside potential if the support at $26,000 were to flip.
Decentrader, a prominent trading suite, identified several resistance levels that Bitcoin would need to overcome to further its upward trajectory. Additionally, the climbing funding rates indicated the possibility of a trend reversal already in progress.
On a positive note, traders such as Moustache and Michaël van de Poppe, pointed out that BTC/USD still held crucial trend lines. Notably, the 21-week and 200-week exponential moving averages (EMAs) were optimism sources for these market participants.
The general consensus among analysts is that the Federal Reserve would pause interest rate hikes, signifying a notable shift in monetary policy after a streak of ten consecutive hikes. This decision is expected to affect risk assets, including cryptocurrencies, positively. However, not all experts are optimistic about a rate freeze’s consequences.
The Long View, an analytics account, highlighted the possibility of the Fed sounding hawkish and questioned whether the reserve would maintain current rates, which would effectively tighten policy, in the event of further inflation decline.
At the time of writing, CME Group’s FedWatch Tool indicated a 75% market probability of the Federal Reserve implementing a rates freeze. Bitcoin traders remain cautiously optimistic as they navigate the potential impact of the CPI report and the Federal Reserve’s forthcoming announcement. The $26,000 level continues to be a critical focal point, determining the market’s short-term direction.
