New Trends in the Cryptocurrency Market

New Trends in the Cryptocurrency Market

In the cryptocurrency market, a fresh breeze is blowing, buoying meme coins such as Shiba Inu and Pepe Coin while simultaneously reigniting Bitcoin (BTC) prices. Investors are brimming with optimism, anticipating higher weekly closings after weeks of escalating uncertainties. This BTC price forecast aims to analyze Bitcoin's technical and fundamental structure ahead of the release of the US Consumer Price Index (CPI) report.

Potential Impacts of US Data

The CPI is a highly regarded measure of inflation in the United States. It gauges the overall change over time in the prices of goods and services purchased by consumers. The US Bureau of Labor Statistics (BLS) calculates and publishes CPI measurements as weighted averages. Market observers and economists eagerly anticipate the BLS data release on May 15.

If inflation persists in April, the risk factor for volatile assets like Bitcoin and cryptocurrencies will intensify. Price movements in recent weeks have prompted further corrections towards $50,000. However, the $56,500 support level last week played a pivotal role in reviving the bull run narrative. This week, bulls are also gaining ground in anticipation of a public statement by Federal Reserve Chairman Jerome Powell on May 14. Additionally, markets await the announcement of the Producer Price Index (PPI).

Markets are highly attuned to Powell's remarks and the specific policy decisions contemplated by the Fed. Generally, investors do not anticipate a rate cut at the upcoming Fed meeting in June. Attention has now shifted to September for the first potential rate cut in 2024. Bitcoin has yet to record a third consecutive daily rise candle since the last drop candle on May 10. A 2.1% surge in the cryptocurrency to $62,634 contributes to the stabilization of the uptrend.

Bitcoin’s $70,000 Target

However, the BTC price forecast suggests that the leading cryptocurrency will remain in a precarious position unless it regains support from the 20-day Exponential Moving Average (EMA) and 50-day EMA. The slightly bullish outlook of the Moving Average Convergence Divergence (MACD) indicator could further enhance the likelihood of a May breakout to $70,000. However, its current position at -864, coupled with short bullish histograms, indicates potential selling pressure risk. Investors should exercise caution this week, particularly in light of various macroeconomic events.

A decline below $60,000 is still possible, potentially extending the correction to $56,500 and, if sustained, towards $50,000. Conversely, positive CPI data could entice investors to support a Bitcoin price increase to $70,000. Surpassing resistance levels at $65,000 and $67,500 could potentially trigger a surge of FOMO.

This article was originally published on COINTURK NEWS: New Trends in the Cryptocurrency Market