Bitcoin Price: Eying $70,000 Or $56,000 Ahead Of CPI Report? (BTC Price Prediction)

A new tailwind is sweeping the crypto market, invigorating Bitcoin's price while bestowing favor upon meme coins like Shiba Inu and Pepe Coin. Investors are radiating with optimism, anticipating higher weekly closes after enduring weeks of mounting uncertainties. This BTC price prediction endeavors to evaluate the technical and fundamental structure of Bitcoin ahead of the imminent release of the Consumer Price Index (CPI) report in the US.

BTC Price Prediction Ahead Of CPI Data Release

CPI serves as one of the most esteemed measures of inflation in the United States. It quantifies the overall change in the prices of goods and services purchased by individuals within the economy over time.

The US Bureau of Labor Statistics (BLS) is entrusted with the task of calculating and disseminating the CPI metrics as a weighted average. Market observers and economists eagerly await the BLS's release of the data on May 15. Should inflation persist in April, the level of risk associated with volatile assets such as Bitcoin, crypto, and stocks will escalate.

Price movements in recent weeks have hinted at a further correction towards $50,000, although support at $56,500 contributed to bolstering the bull run narrative last week. This week also elevates the stakes for bulls, as Federal Reserve Chair Jerome Powell is scheduled to deliver a public commentary on May 14. Concurrently, markets anticipate the release of the Producer Price Index (PPI).

Markets have exhibited a high degree of responsiveness and sensitivity to Powell's commentary, particularly when it pertains to the Fed's intended policy decisions. Overall, investors do not anticipate a rate cut at the next Fed meeting in June. Attention has now shifted to September for the first potential rate cut in 2024.

Will Bitcoin Price Surge Or Fall With CPI Data Release?

Bitcoin is currently trading its third consecutive daily green candle after the last red candle on May 10. The 2.1% increase to $62,634 contributes to solidifying the uptrend. Nevertheless, BTC price prediction suggests that the largest crypto will remain in a state of uncertainty until support at the 20-day Exponential Moving Average (EMA) and the 50-day EMA is re-established.

BTC price prediction chart | Tradingview

The moderately bullish outlook provided by the Moving Average Convergence Divergence (MACD) indicator further enhances the likelihood of a breakout to $70,000 in May. However, its current position at -864, coupled with the presence of short green histograms, introduces the potential risk of downward pressure from the sell side.