Bitcoin’s price currently stands at $68,700, and recent macro data is positive. Cryptocurrency investors are apprehensive about the potential for further tightening by the Federal Reserve, while macroeconomic data emphasizes the risk of increased tightening. What do experts predict for the markets?
Cryptocurrency Market Update
There has been a recent increase in the number of price fluctuations towards the $67,000 mark. This level is crucial for the bulls to maintain, but the frequent testing is seen as negative. On the other hand, consistent sales above $70,000 indicate a lack of momentum. In his latest analysis, crypto commentator Skew stated, “Before the ongoing attempt at $69,000, the RSI indicated a new dip test at $65,000.”
Insights from Analysts
Bitcoin analyst Roman highlights the decrease in volume during repeated visits to the lower end of the short-term range. The declining volumes suggest that fewer investors are selling, which is essential for sharp declines. Therefore, from this perspective, these pullbacks may not lead to catastrophic outcomes. Roman states, “Low volume + low price = an uncertain downtrend. We are taking advantage of short-term reversals in this area to make long-term purchases.”
The Producer Price Index (PCE), the Federal Reserve’s favored inflation gauge, will be announced on May 31. Today’s data indicates that economic growth is below expectations, indicating that the Fed’s tightening measures are effective. Additionally, the Beige Book details reveal a decrease in personal spending in favor of inflation. Unemployment figures are positive, and if the PCE meets expectations, investors will feel relieved.
Of course, it’s important to remember the unpredictable nature of cryptocurrencies, and investors should always be prepared for any possibility. The SEC’s sudden change in stance last week serves as a recent example of this unpredictability.
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Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended to conduct thorough research before making any investment decisions.
