Bitcoin Traders Eye Powell's Move for Potential Surge to $80,000

Traders are eyeing a robust rebound in Bitcoin's price, fueled by historical performance data and the expectation that the Federal Reserve will pump our bags. This sentiment suggests optimism for Bitcoin surpassing $80,000.

Source: diken.com.tr

On May 13, Bitcoin experienced a 3% price surge as crypto traders braced for potential volatility leading up to this week's release of U.S. macroeconomic data. Recorded an intraday high of $63,269 for BTC shortly after the opening of Wall Street trading on May 13. This week, market participants are eagerly awaiting updates on United States inflation data, which will play a crucial role in determining whether the Federal Reserve will consider lowering interest rates in 2024.

The U.S. Producer Price Index (PPI) is slated for release on Tuesday, May 14, followed by the Consumer Price Index (CPI) reading on May 15. CME's FedWatch tool, market analysts are predicting a 72% likelihood of rates remaining unchanged at the July Federal Open Market Committee (FOMC) meeting, with the possibility of rate cuts gaining traction later in the year, standing at 48.6% for the September meeting. Traders are estimating a 91.1% probability of rates staying steady at the June meeting.

An analyst pointed out that decreasing inflation could bode well for risk assets such as Bitcoin, potentially setting the stage for a significant upward movement in the market. Another analyst, Seth, shared a chart on X on May 12, highlighting that the relative strength index (RSI) had surpassed a descending trendline on the daily timeframe. The analyst noted that the direction of Bitcoin's price is likely to be influenced by this week's release of CPI, Core CPI, PPI data, and the speech by the Federal Reserve chair.

Bitcoin's Price Has Taken A Negative Turn But There's Optimism For A Potential Rebound Later On

Since its peak of $73,835 on March 14, Bitcoin has been on a prolonged downtrend. The price has consistently formed lower highs and lower lows, while the Relative Strength Index (RSI) has declined, nearing oversold territory at 33 on May 1. This downward movement in Bitcoin's price has been reflected in the Index, which has plummeted from $0.08 to nearly zero over the same period.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.