In the cryptocurrency market, a new wind is blowing that supports meme coins like Shiba Inu and Pepe Coin while awakening Bitcoin (BTC) prices. Investors are joyful, hoping for higher weekly closings after weeks of increasing uncertainties. This BTC price prediction aims to assess Bitcoin’s technical and fundamental structure before the release of the US Consumer Price Index (CPI) report.
Potential Impacts of US Data
The CPI is one of the most valuable measures of inflation in the United States. It measures the general change over time in the prices of goods and services that people buy in the economy. The US Bureau of Labor Statistics (BLS) calculates and publishes CPI measurements as a weighted average. Market watchers and economists eagerly await the BLS’s data release on May 15.
If inflation continues in April, the risk level in volatile assets like Bitcoin and cryptocurrencies will increase. The price movement in the last few weeks has led to further corrections towards $50,000. However, the $56,500 support last week helped revive the bull run narrative. This week, bulls are also increasing their share as Federal Reserve Chairman Jerome Powell is expected to make a public statement on May 14. In addition, markets are waiting for the announcement of the Producer Price Index (PPI).
Markets are very sensitive to Powell’s comments and the exact policy decisions the Fed aims for. Generally, investors do not expect a rate cut at the next Fed meeting in June. Now, eyes are turned to September for the first rate cut in 2024. Bitcoin is not trading a third consecutive daily rise candle after the last drop candle on May 10. A 2.1% increase in the cryptocurrency to $62,634 helps stabilize the rising trend.
Bitcoin’s $70,000 Target
However, the BTC price prediction shows that the largest cryptocurrency will remain in the woods unless the support of the 20-day Exponential Moving Average (EMA) and 50-day EMA is reclaimed. The slight bullish outlook of the Moving Average Convergence Divergence (MACD) indicator could further increase the chance of a breakout in May to $70,000. However, its current position at -864, combined with short bullish histograms, reveals potential pressure risk from the selling side. Investors need to be cautious this week, especially due to various macroeconomic activities.
A drop below $60,000 is still possible, which could extend the correction to $56,500, and if pushed, it could move towards $50,000. On the other hand, positive CPI data could call investors to support a rise in Bitcoin’s price to $70,000. Climbing over resistance areas at $65,000 and $67,500 could potentially trigger FOMO.
