Bitcoin (BTC) returned above $26,000 on June 13 as analysts eyed resistance overhead.
Bitcoin price inches between trend lines
The pair had seen a curiously uneventful start to the week despite ongoing fallout from United States legal action and markets preparing for a slew of macroeconomic data releases.
Thus, Bitcoin remained in a narrow range, which has been in place since midway through the weekend.
“Risky day for any deep trades,” popular trader Crypto Tony wrote in part of the day’s Twitter analysis, considering upside potential should the support flip occur.
Meanwhile, the trading suite DecenTrader flagged multiple resistance levels to overcome next. It noted that funding rates were climbing, indicating a potential trend reversal already entering.
Other traders, including Moustache; and Michaël van de Poppe, founder and CEO of trading firm Eight, noted BTC/USD still holding trend lines which could be cause for optimism — specifically, the 21-week and 200-week exponential moving averages (EMAs).
#Bitcoin - Update$BTC is still holding above the (W) EMA 21 line.— ⓗ (@el_crypto_prof) June 12, 2023
Anyone who has been in crypto long enough, knows how significant this line is.
- Falling wedge still active✅
CPI and FOMC this week.
I think we'll see a lot of volatility. pic.twitter.com/Pgi6qRSQkM
“Ultimately, we’ll see coming few days whether that’s going to sustain or whether we’ll continue this downwards slope,” Van de Poppe commented the day prior about the 200EMA.
CPI day arrives
Macroeconomic data prints for the week center on the Consumer Price Index (CPI) due June 13, just a day before the Federal Reserve announces interest rate changes.
The Fed is expected to pause interest rate hikes, which would follow a full 10 consecutive hikes and mark a long-awaited turning point in policy.
While a potential boon for risk assets, including crypto, not everyone was upbeat about the impact of a rates freeze.
“The Fed will likely still sound hawkish but the more important question is if they will hold rates where they are (effectively tightening policy) if inflation falls further,” analytics account The Long View wrote in part of its latest Twitter commentary.
According to CME Group’s FedWatch Tool, market odds of a freeze stood at around 75% at the time of writing.
“I think they will as they are highly attuned to the fact that if they start to cut like past cycles they will be helping to reignite rate sensitive sectors effectively undermining the work they have done.“
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